“Industrial Espionage” - Apple Sues OpenAI on Stealing Trade Secrets

**SPEAKER_1** (0:00)
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**Patrick Bet-David** (0:30)
OpenAI allegedly stole from Apple. And they're calling this industrial espionage. That was the word that Tom was using. He's like, Pat, this is industrial espionage. And so it's a very big story. Let me, I'll go through the addendum first, and I'll go to the other one.
I think page 24, is that the one, Tom? What page do you have it on? On this story, this is a massive, massive story.

**Tom Ellsworth** (0:56)
Main 10 is where it starts.

**Patrick Bet-David** (0:58)
For you, it's Main 10
See, I don't have it on my Main 10 Can I get your notes? Mine doesn't say Main 10 So I went to Main 10 and I don't have it.
Which one do you have as Main 10? Okay, let me read this to you. Apple sues OpenAI, alleging trade secret theft, says scheme was at every level. CNBC story. Apple on Friday sued OpenAI in federal court in Northern California, alleging trade secret theft, saying that the Artificial Intelligence Lab took the iPhone's marker, intellectual property, in order to develop its own consumer hardware. This much is clear, however, at every level from members of its technical staff to its chief trade secrets and confidential information, the company said in a legal filing, it's a shocking reversal for the two companies, which entered into a high-profile partnership in 2020 for when Chad GPT was integrated into the iPhone's operating system. OpenAI CEO Sam Altman visited Apple's headquarters for the announcement, but relations between the two companies have chilled since OpenAI announced plans to enter the hardware industry last year when it bought former Apple designer John Ive's startup called IO. I product for $6.4 billion. Apple's updated version of its Siri system, which is coming out this fall, is based on Google's Gemini models instead of Chad GPT. Most of Apple's allegations involve former employees who have interviewed, who with or joined OpenAI. Apple alleges that OpenAI's Chief Hardware Officer Tank Tan, who is a former Apple Vice President, has directed Apple employees interviewing at OpenAI to share Apple secrets as part of the interviewing process. What? He has directed job candidates still working at Apple to bring actual parts from Apple to their interviews for show and tell sessions, in which he and his team at OpenAI can elicit still more Apple confidential information, Apple said in the filing. That is insane. Tom, your thoughts on the story.

**Tom Ellsworth** (2:52)
So this is going to get really, really big. And the question is going to be, who's got the biggest lobbyist or the biggest proxy balls, with the Department of Justice and the Federal Trade Commission? I'll tell you why.
So on one hand, they're saying, oh, no, no, no, in an interview, like I'm interviewing you, Pat. Hey, Pat, you worked at Apple. Tell me about some of the projects you worked on. Did you really work on it? Were you involved?

**Patrick Bet-David** (3:22)
Those are fine questions.

**Tom Ellsworth** (3:24)
On your resume here, it says you directed the project. Did you direct it or were you just involved?

**Patrick Bet-David** (3:29)
I directed the project.

**Tom Ellsworth** (3:30)
These are standard interview, right? Yes, you're sorting it out because, Vinny, some people say they did more than they did. Of course. Well, the line gets crossed is, do you have any schematics or anything? And the allegations are people were encouraged to come to the meeting with printouts or other schematics or things to talk about what they did. And then all of a sudden, OpenAI allegedly had suddenly you're in an interview with ten people, supposedly. So if that's what happened, that's bad. What's even worse is there are allegations of documentation that they said, hey, Vinnie, Pat, you know, when you leave Apple, the following three things are going to happen on your laptop with the security team. If you do this, this and this, you can evade the security detection. If you want to, you know, bring any of that with you. Here's what's dangerous about this.
What kind of salaries have we been hearing about top hires in Silicon Valley? We've been talking about that.

**Patrick Bet-David** (4:24)
Ridiculous. Did Dana White in an interview the other day said, he sits on a board of Metta, he says, Mark Zuckerberg is the biggest badass I've met in my life. Dana said in an interview, he paid four engineers a $65 million a year salary. What? Did you hear what I just said? Four? Okay, can you find this clip? Metta says four employees, that's the one right there. Play that clip.