Apple Sues OpenAI Alleging Trade Secret Theft in Industrial Espionage Case

Open AI, 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 it's a very big story. Let me I'll go through the addendum first and I'll go to the other one. Uh I think uh page 24, is that the one, Tom? What page do you have it on? Uh on this third This is a massive story. 10 is where it starts. For you, it's main 10? Uh 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.

Uh which one do you have as main 10? Okay, let me read this to you. Apple sues Open AI alleging trade secret theft, says scheme was at every level. CNBC story. Apple on Friday sued Open AI 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. Where 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 2024 when ChatGPT was integrated into the iPhone's operating system. Open AI CEO Sam Altman visited Apple's headquarters for the announcement, but relations between the two companies have chilled since Open AI announced plans to enter the hardware industry last year when it bought former Apple designer Jony Ive's startup called IO product for $6.4 billion. Apple's updated version of its Siri assistant, which is coming out this fall, is based on Google's Gemini models instead of ChatGPT. Most of Apple's allegations involve former employees who have interviewed who with or joined Open

AI. Apple alleges that Open AI's chief hardware officer Tang Tan, who was 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. 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 um proxy um balls with the Department of Justice and

the Department of 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. Yep. Hey, Pat. Um you know, you worked at Apple. Tell me about some of the projects you worked on. Uh did you really work on it? Were you involved? Are you some Right on Those are fine questions. Oh, yes, right. On your resume here, it says you directed the project. Did you direct it or were you just involved?

I directed the project. That's These are standard interview, right? You're you're sorting it out because, you know, Vinnie, some people say they did more than they did. Of course. Well, the line gets crossed is uh 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 10 people. Oh, no. Supposedly. So, if that's what happened, that's bad. What's even worse is there are allegations of documentation that they said, "Hey, uh 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 them. Ridiculous. Dana White in an interview the other day said he's he sits on a board of Meta. He says, "Mark Zuckerberg is the biggest badass I met in my life." Dana said in an interview.

Yeah. 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? Meta says four employees That's the one right there. Play that clip. Can you make Watch this, folks. No sound. No. I just got back from a Meta board meeting. Zuckerberg, [snorts] who is a brilliant gangster. This guy is These people who try to talk about him and everything else, I'm so blown away and impressed by this guy. He's an animal. And uh putting all the chips in on AI. We just hired like 10 kids that are aged 22 to 28. The average salary is like $65 million.

What? That these kids are making that are coming in working on AI. What? AI And they don't have to fly. negativity about AI. There's way more positives about AI than there are negatives. 22 to 28 years old, average salary $65 million. So, when they're trying to hire you in open AI on right now in Silicon Valley. So, this is what Tom's talking about. So, It's happening in Silicon Valley. basically the allegation that it's even worse. It's bad enough to say, you know, "Tell me what you did at Apple."

Interview question. "Hey, bring a couple things with you and show them to them and all of a sudden you have a panel interview." That's bad. That's illegal. You're putting the applicant in bad situation. And if that's the way it happened, that sort of thing would be illegal. Um I'm not the judge and jury on this. But then, there have been documents and emails found where they told them exactly how to evade Apple security when you leave your job and come over here. And you're talking about We don't know what the salaries are, but what Dana White was just talking about is just how big the war is for talent. war. And so this thing, this industrial

espionage, this is going to be huge. Um the last time we've seen things this huge, you know, we had a giant one that happened Formula 1 where Ferrari guys McLaren guys stole secrets from Ferrari guys. They told the Ferrari guys to go have them printed out at Kinko's when there was a Kinko's and then the McLaren guys went in there and fake the ID and picked them up. So, it was this it's crazy, but industrial espionage has been going on for a while, but this is huge. What's also big is a number of people that are lining up against Sam Altman including Elon Musk. the clip of what he said about Elon Musk?

Elon is not a fan of Sam. At all. He calls him scam Altman. Yeah, he is not a fan of what happened there. Yeah. He's not Adam, your thoughts on this? Yeah, you guys you're absolutely right with the Elon thing. You know, when did ChatGPT open I came out? I think November of 2022. Does that make sense? Since then, I feel like everything with Sam Altman has been drama and beef. You bring up the Elon Musk thing. He calls him what? Scam Altman? It's interesting.

Do you remember I think Tommy remember this he was CEO he was fired then rehired. There was also like there was almost like a revolt within the company. Yeah, he meaning Sam. That's right. Tucker Carlson interviewed him and basically kind of was like, "Did you murder one of your employees?" He's like, "What are you insinuating right here?" This Balaji guy, if you remember that. It's like it was a suicide it was a delivery. Weird situation. I'm making zero accusations. I'm saying that's what Tucker did. But now it's not even Apple that's suing him. Apparently there's all these copyright infringements, publishers,

artists, musicians, authors, everything. There's privacy concerns. Sam Altman, he's got some explaining to do as they say. By the way, can you do me a favor? latest thing with Apple. it and it's around mainly one guy. Can you pull up Tank Tang? A great name. Yeah, yeah, yeah. T A N G. It's almost related No, no. The first one yeah, you go. So, who is Tank Tang? Let me kind of give you an idea. Can you go to images on who this guy is? Go to images.

Tank spent 24 years at Apple. No, you the second one is not Tank. No, the second one This one is Tank, the second one is missing a G. There you go. Take the G out. There you go. So, that guy right there. Go to all and go to his Wikipedia. He's spent 24 years at Apple. This is the main guy that lawsuit just everybody knows. He joined Apple in the early 2000s, became one of the company's top hardware executives, was widely regarded as part of generational leaders who helped shape the iPhone after Steve Jobs. This is a heavyweight. Damn. This guy is a heavyweight. He helped oversee iPhone and Apple Watch hardware.

Responsibilities included engineering and product design. He was one of Apple's highest-ranking hardware leaders. They have a score, like you know how in the military there's sergeant major, general. B my little general. Brigadier generals are one-star, major generals are two-star, lieutenant general three-star, and then general is a four-star, right? So, this guy's one of the heavyweights there. Then he left Apple in '24 and he joins Jony Ive's new hardware company, which OpenAI you heard just bought for $6.4 billion. OpenAI requires it. And so, why is he important? OpenAI wants to build AI device that could someday compete with the iPhone. And so, Apple is suing because they're saying you're taking this away. So, this guy is the main

figurehead of um in this discussion. Uh so, it's interesting. It's It's kind of like what happened with when Jake Paul, I believe, recruited Dana White's former CFO that went to him. I don't know if you remember that or not. Jake Paul recruited him, Armenian guy. Oh, yeah, yeah, yeah. I remember. Armenian guy. Good-looking guy. He had that red jacket on. He's got a He's kind of like a power player. These types of things happen right there. Nakisha uh Bidarian, who left there. He was a former UFC CFO from '11 to '16 and helped orchestrate the historic $4 billion sale to Endeavor. So, he then goes and go joins Jake Paul. When this kind of stuff happens, it happens it happened to us, it happens to everybody.

It's just It's going to stuff like this happens. Pat But it's a real war that is taking place. The problem is the following. Tommy, here's the question I got for you. What major investor influencer that people respect is siding with Sam Altman? Who is the person that's defending him? I'm not seeing it. I mean, CNBC Microsoft cuz they own it, but outside of that, I'm saying what other I Microsoft is involved with OpenAI, if I'm not mistaken. I'm talking about what major mainstream critic is sitting out there and saying, "No, Sam Altman's a good guy. They're doing the right thing." Who's Who's on his side?

I'm I'm I haven't seen one. seeing it. Can't go like that for too long. You know, it's kind of like You know what OpenAI is reminding me of? OpenAI is kind of like what Israel's going through. You OpenAI is losing the propaganda war. And guess what? People don't like you. They're not liking what you're doing, and you can sit there and do whatever you want and act like you're all high and mighty and keep talking trash to Elon. People like Elon. Yeah. And people don't like you. So then the question becomes what no major tech CEO or companies has loudly backed Altman OpenAI in the specific disputes? That's not good.

Nope. That's not good. You have to be good at building relationships behind closed doors for people to defend you. That's horrible. So that means It's kind of like I work at a place. And let's just say something happens, I leave. No one at the previous companies willing to vouch for me. They don't like me. That's not a good thing for you to do. How come on the only people do are the people that are no longer at the company? You have to have people that vouch for you, for people to say, "When I left the previous company and I started PHP, there were a lot of people that were still friends with me." And I was like, "Hey, you don't have to worry about me taking clients, me doing this,

me doing that." I never took a single person I'm like, "Hey, I'm just taking what I got here. You guys keep the 7,000 clients." We went and built our business. Still, you met Jeff the other day came to the house. He was part of the company over there. He was an enemy of mine. A lot of So, so to me, I think Altman has to Altman has what some of these guys have, which is they're not good with people. They're so brilliant that they indirectly don't even know it. They look down at people. Altman needs to go read How to Win Friends and Influence People 50 times. Altman needs to go learn how to be better with people, not robots. You can't befriend robots. They're your slaves. You have to befriend people, and

he's not good at that. So, Sam, if you're watching this, maybe go watch this one, and there's another book they may want to read as well. Can you go to Power of Ethical Management? I think the Power of Ethical Management is a good book recommendation for Sam Altman as well. It's an oldie, but a goodie. It's 96 pages, I think. Uh maybe it's like 100 pages. Uh yeah, that one Can you go all the way to the bottom of how many pages it is so you can finish it fairly in like a 30-minute sit-down? What's the number of pages? 144 pages. I was off by 50 pages.

Small book. Good book. But, the Power of Ethical Management the final thing here is like AI is getting a lot of pressure from the government, and these guys are not dumb, and they move faster than the government. Dean Ball, um started July 6th of this month with um OpenAI. You know who he was from? Where? He was a White House AI advisor and had a career in public policy. So, now they have a Washington guy on there as the head of strategic future at OpenAI, and Meta hired Dina Powell McCormick, which was Trump and George W. Bush advisor on economic policy, and brought him in January as president and vice chairman of Meta super intelligence. So, they are also going out and getting soldiers from

Washington to help them in the war when the Department of Justice, the Federal Trade Commission and Meta. Those were two key hires just this July. tell you though, Tom, there's a big difference. Who did you just hear right now going out there talking about how amazing of a person he is? What clip did I just play? Of a guy that's loved and respected that just edified Mark Zuckerberg for a good minute. Do you know why? Sam Altman has to go find three Dana Whites and put them on his board ASAP. He has to do that ASAP. and pay big money for those people to be sitting on your board and people with high Q scores. He has to get some people

like that. And desperately give them stocks, options, shares, whatever it is to have a big upside. He's got to go find three people like that. Can you go a little bit lower of Dana? Go a little bit lower of Dana. Do you see the pictures that the shows on the bottom right? Keep going. Keep going lower. Okay, click on Joe Rogan real quick. Click on Rogan real quick. Just click on Rogan real quick. Uh I'm sorry, go back and click on see more. Right there, see more. Right there. Click on that.

Uh get somebody Keep going left. Keep going Yeah, you got to get somebody that's You got to get like a Get Mr. Beast and give him a billion dollars. Yeah. Get Mr. Beast and give him a billion dollars in shares to sit on the board. I'm being serious, by the way. I'm actually not You know, go get Look what sports You know who's one of the people that's brought a lot of eyeballs to the entire World Cup? You know who? IShowSpeed Yeah. Have you seen how he's crying with Ronaldo? Hey, please let me know more. I need you to beat Messi and I Boom, he posted a clip yesterday. IShowSpeed posted a clip yesterday at the Argentina

game. Do you know how many views this clip got? Let me tell you, Vinnie, you're not going to believe how many clips this thing got. on YouTube? On Instagram. IShowSpeed posts a video begging Lamine Lamal to beat Messi. And this is 17 hours ago. Okay, do you know how many views it got? I just want you to tell the people how many views it got. 5.9 mil Oh, 118 million views. In how many minutes? In how many hours? Can you tell me in how many 17 hours. me who can get that kind of views. First one right there. Watch this.

Hang on a second. [clears throat] thing got 117 18 million views in 17 hours. Okay, so pause it right there. I think Open AI needs to offer Mr. Beast a 5-year $1 billion comp to just sit on the board and get two other guys like that. Cuz Mr. Beast has got a good following. He's got to get some people like that. He's got to get some people like a Dana White, some major power players that have credibility. And now the question becomes, should Mr. Mr. Beast accept it? Well, that's what I'm saying. Cuz that's a whole different conversation. Anyways, let's go to the next story. Yes.

Oh, no, you want to move on? I just had a quick point. That Look, I saw Zuckerberg at the UFC fight. The guy We're giving him a little too much credit. This guy is just finding out that he's a human. Like we're Mark Zuckerberg was a was an alien/robot for 20 years, and all of a sudden he's becoming cool. What's my point with Sam Altman? This guy's been famous for what? 3 years? 4 years? The IShowSpeed is a marketing genius. Sam Altman is an actual genius. He's just an introverted nerd like all these Silicon Valley guys. So, eventually, yes, I do think he needs to get the job done and get someone in [clears throat] there, but they're being a little hard on this guy for being an actual genius nerd when they're all like that.

That was your point? You paused into make that point, Adam. This guy So, let me ask you a question. Is Jeff Bezos a nerd? Yeah, and it took him 30 years to actually try to become cool. Oh, no, you don't understand. This guy is hated by all the nerds right now. All of them, including Tim Cook. He's hated by Bezos lunch. by Cook Maybe it's cuz he's beating them. not beating them, though. He's not. He's lost market share to Anthropic more than you would know. If you go look at what's going on with Anthropic right now,

Anthropic is taking his lunch. They used to be at 80-90% of the LLM business. They're not anymore. People don't like this guy. You can't move up without being liked and having some people skills. No, he is You know whose vibe he's giving me? Uh he's giving me vibes of SBF when he was coming up and he thought his didn't stink. That's the vibes he's giving me. Not the not the criminal stuff. I'm not going on the finance I'm not going from that. Just the vibe of let me tell you who I am. I don't know. I think he's got to make some adjustments. That's my thoughts. Let's go to the next story.

make a final point for you that's on this? Yep. So, I show speed 110 million views in 24 hours. Yep. Tay You know what the record is for Taylor Swift downloads in the first 24 hours of any song? Tell me, tell. 30 million for Ophelia. Let's put that in perspective. To your point, this guy should be big money somewhere. Yeah, yeah. No, and to me it's just he And the only reason I showed I show speed is not complimenting Kim. It's complimenting SportsCenter ESPN FIFA that they're using this guy to bring eyeballs to it. It's a smart move.

OpenAI needs to go get some guys like Dana White. That was the point I was making. Every year we do this one event. It's a very special event. We allow business owners and people to come into our headquarters where we give you a tour and we make introductions for people to do business together. Last year we did the pre-vault conference networking event. We're doing it again this year at our property. I'll let you know how to do it. It'll be June 29th at 6:00 p.m. to 8:00 p.m. Then some of the folks afterwards will go to our private cigar lounge to network with each other, smoke cigars, have drinks, etc. I to watch what happened here last year at our networking event

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