Transportation

The due diligence report commissioned by Uber before acquiring Otto is now public

Comment

Image Credits: ANGELO MERENDINO/AFP / Getty Images

A potentially pivotal document in the legal fight between Uber and Waymo, the self-driving car company that was originally part of Google, has been released. It is a report (embedded at the bottom of this post) commissioned by Uber from cybersecurity firm Stroz Friedberg last year as part of its due diligence before acquiring Otto, a self-driving truck startup founded by former Google employees. Stroz was asked to investigate whether or not Otto co-founder Anthony Levandowski, a former Google engineer who worked on Waymo, and other Otto employees took confidential information from Google or breached their non-compete clauses.

Waymo, which filed a lawsuit against Uber in February, has fought for the document’s release, arguing that it likely contains information relevant to its allegations that Levandowski stole thousands of files from Google and brought them to Uber. It also said it may answer some of the questions Levandowski has refused to answer by exercising his Fifth Amendment rights. Uber, which fired Levandowski in May, declined to provide it, claiming that the document contains confidential information between attorneys and clients.

After a federal circuit judge ruled last month that Uber must hand over the report, Waymo said it needs more time to review it and asked for the trial, which is scheduled to start in a week, to be postponed. A hearing will take place tomorrow on whether or not to grant Waymo’s request.

Stroz investigators reviewed over 100,000 documents, 74,000 pictures and 176,000 source code files for the report. It shows that Levandowski accessed Google files, including ones related to the design of driverless cars, even after he left the company, but it doesn’t conclude what he did with them.

Among other revelations, Levandowski told Stroz that he found five discs containing Google information in a closet while searching his house for devices to give the investigators, but had them destroyed at a commercial shredding factory called Shred Works in Oakland. Levandowski told Stroz that they contained proprietary information, including source code and design files related to Google self-driving cars.

Levandowski also said that he informed Uber employees, including chief executive officer Travis Kalanick, about the existence of the discs in March 2016. He says Kalanick said he wanted nothing to do with the discs and told Levandowski to “do what he needed to do.” After that, Levandowski says he took them to Shred Works and watched as they were destroyed.

Stroz followed up during its investigation by visiting Shred Works, but couldn’t confirm if the documents were indeed ordered destroyed by Levandowski. While a Shred Works facility manager found a receipt that indicated it had received cash to destroy five discs around the time Levandowski told Uber about them, the signature on the receipt was illegible and no one at the faciility recognized Levandowski from a photo Stroz showed them.

Stroz also said it found 50,000 work emails from Levandowski’s time at Google on his personal computer. Levandowski claimed that he did not remember when he last looked at the emails and “seemed surprised” at how many of them were on his laptop. But because ten of those emails were accessed between September 2015 and January 2016, when Levandowski left Google, Stroz investigators wrote that it was “difficult to believe that Levandowski was not, prior to his interview, fully aware of the extent of the data that he had retained.”

Stroz found that Levandowski had accessed Google files even after he left the company and then deleted them, including source code and electronic design files related to driverless cars. He also asked an unknown recipient to delete iMessages from him during the investigation and even attempted to empty the trash on his Macbook Pro while he was at Stroz’s office, but investigators found no files contained in his trash at the time he tried to empty it.

Investigators wrote that even though Levandowski may have deleted those files in “good faith” to comply with Google’s requirements, he shouldn’t have after he knew the investigation was going to take place:

“Many of these deletions may have been good faith attempts by Levandowski to purge retained Google material from his devices in accordance with his obligation not to retain confidential Google data. However, by March 2016, Levandowski was aware that Stroz Friedberg was going to implement a process to preserve, identify and potentially remediate retained Google material from his devices. At that point, the better course would have been to let that process control. In addition, there was an effort by Levandowski and his Ottomotto colleagues to delete texts in real time.”

In a press statement, an Uber spokesperson said:

“Before Uber acquired Otto, we hired an independent forensics firm to conduct due diligence because we wanted to prevent any Google IP from coming to Uber. Their report, which we are pleased is finally public, helps explain why—even after 60 hours of inspection of our facilities, source code, documents and computers—no Google material has been found at Uber. Waymo is now attempting to distract from that hard fact, even attempting to hide its core trade secrets case from the public and the press by closing the courtroom. In the end, the jury will see that Google’s trade secrets are not and never were at Uber.”

As expected, Waymo has a different take. Here is its statement about the release of the report:

“The Stroz Report unequivocally shows that, before it acquired his company, Uber knew Anthony Levandowski had a massive trove of confidential Waymo source code, design files, technical plans and other materials after leaving Google; that he stole information deliberately, and repeatedly accessed it after leaving Waymo; and that he tried to destroy the evidence of what he had done. In addition, Mr. Levandowski used his smartphone to take thousands of covert photographs of computer screens displaying Google confidential files. Knowing all of this, Uber paid $680 million for Mr. Levandowski’s company, protected him from legal action, and installed him as the head of their self-driving vehicle program. This report raises significant questions and justifies careful review.”

The full document is embedded below:

More TechCrunch

Welcome back to TechCrunch’s Week in Review. This week had two major events from OpenAI and Google. OpenAI’s spring update event saw the reveal of its new model, GPT-4o, which…

OpenAI and Google lay out their competing AI visions

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’

When Jeffrey Wang posted to X asking if anyone wanted to go in on an order of fancy-but-affordable office nap pods, he didn’t expect the post to go viral.

With AI startups booming, nap pods and Silicon Valley hustle culture are back

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says

A new crop of early-stage startups — along with some recent VC investments — illustrates a niche emerging in the autonomous vehicle technology sector. Unlike the companies bringing robotaxis to…

VCs and the military are fueling self-driving startups that don’t need roads

When the founders of Sagetap, Sahil Khanna and Kevin Hughes, started working at early-stage enterprise software startups, they were surprised to find that the companies they worked at were trying…

Deal Dive: Sagetap looks to bring enterprise software sales into the 21st century

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI moves away from safety

After Apple loosened its App Store guidelines to permit game emulators, the retro game emulator Delta — an app 10 years in the making — hit the top of the…

Adobe comes after indie game emulator Delta for copying its logo

Meta is once again taking on its competitors by developing a feature that borrows concepts from others — in this case, BeReal and Snapchat. The company is developing a feature…

Meta’s latest experiment borrows from BeReal’s and Snapchat’s core ideas

Welcome to Startups Weekly! We’ve been drowning in AI news this week, with Google’s I/O setting the pace. And Elon Musk rages against the machine.

Startups Weekly: It’s the dawning of the age of AI — plus,  Musk is raging against the machine

IndieBio’s Bay Area incubator is about to debut its 15th cohort of biotech startups. We took special note of a few, which were making some major, bordering on ludicrous, claims…

IndieBio’s SF incubator lineup is making some wild biotech promises

YouTube TV has announced that its multiview feature for watching four streams at once is now available on Android phones and tablets. The Android launch comes two months after YouTube…

YouTube TV’s ‘multiview’ feature is now available on Android phones and tablets

Featured Article

Two Santa Cruz students uncover security bug that could let millions do their laundry for free

CSC ServiceWorks provides laundry machines to thousands of residential homes and universities, but the company ignored requests to fix a security bug.

2 days ago
Two Santa Cruz students uncover security bug that could let millions do their laundry for free

TechCrunch Disrupt 2024 is just around the corner, and the buzz is palpable. But what if we told you there’s a chance for you to not just attend, but also…

Harness the TechCrunch Effect: Host a Side Event at Disrupt 2024

Decks are all about telling a compelling story and Goodcarbon does a good job on that front. But there’s important information missing too.

Pitch Deck Teardown: Goodcarbon’s $5.5M seed deck

Slack is making it difficult for its customers if they want the company to stop using its data for model training.

Slack under attack over sneaky AI training policy

A Texas-based company that provides health insurance and benefit plans disclosed a data breach affecting almost 2.5 million people, some of whom had their Social Security number stolen. WebTPA said…

Healthcare company WebTPA discloses breach affecting 2.5 million people

Featured Article

Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Microsoft won’t be facing antitrust scrutiny in the U.K. over its recent investment into French AI startup Mistral AI.

2 days ago
Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Ember has partnered with HSBC in the U.K. so that the bank’s business customers can access Ember’s services from their online accounts.

Embedded finance is still trendy as accounting automation startup Ember partners with HSBC UK

Kudos uses AI to figure out consumer spending habits so it can then provide more personalized financial advice, like maximizing rewards and utilizing credit effectively.

Kudos lands $10M for an AI smart wallet that picks the best credit card for purchases

The EU’s warning comes after Microsoft failed to respond to a legally binding request for information that focused on its generative AI tools.

EU warns Microsoft it could be fined billions over missing GenAI risk info

The prospects for troubled banking-as-a-service startup Synapse have gone from bad to worse this week after a United States Trustee filed an emergency motion on Wednesday.  The trustee is asking…

A US Trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’

U.K.-based Seraphim Space is spinning up its 13th accelerator program, with nine participating companies working on a range of tech from propulsion to in-space manufacturing and space situational awareness. The…

Seraphim’s latest space accelerator welcomes nine companies

OpenAI has reached a deal with Reddit to use the social news site’s data for training AI models. In a blog post on OpenAI’s press relations site, the company said…

OpenAI inks deal to train AI on Reddit data

X users will now be able to discover posts from new Communities that are trending directly from an Explore tab within the section.

X pushes more users to Communities

For Mark Zuckerberg’s 40th birthday, his wife got him a photoshoot. Zuckerberg gives the camera a sly smile as he sits amid a carefully crafted re-creation of his childhood bedroom.…

Mark Zuckerberg’s makeover: Midlife crisis or carefully crafted rebrand?

Strava announced a slew of features, including AI to weed out leaderboard cheats, a new ‘family’ subscription plan, dark mode and more.

Strava taps AI to weed out leaderboard cheats, unveils ‘family’ plan, dark mode and more

We all fall down sometimes. Astronauts are no exception. You need to be in peak physical condition for space travel, but bulky space suits and lower gravity levels can be…

Astronauts fall over. Robotic limbs can help them back up.

Microsoft will launch its custom Cobalt 100 chips to customers as a public preview at its Build conference next week, TechCrunch has learned. In an analyst briefing ahead of Build,…

Microsoft’s custom Cobalt chips will come to Azure next week

What a wild week for transportation news! It was a smorgasbord of news that seemed to touch every sector and theme in transportation.

Tesla keeps cutting jobs and the feds probe Waymo