Litigation could pause OpenAI device plan
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Apple's trade secret lawsuit against OpenAI on Friday could derail or slow OpenAI's attempts to launch a hardware product.
Why it matters: Launching its own device was the rationale for OpenAI's acquisition of io for about $6.5 billion last year.
- Io was co-founded by Apple veterans including Tang Tan (OpenAI's now hardware chief who is named in the lawsuit) and Jony Ives (who is not named).
Catch up quick: The lawsuit alleges that the AI company coordinated theft in its efforts to build a consumer hardware division.
- Apple is seeking preliminary and permanent injunctions preventing OpenAI and io from possessing or using "Apple's trade secrets."
What they're saying: "OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets," the lawsuit reads.
- OpenAI, in response, said that "We have no interest in other companies' trade secrets. We remain focused on building innovative technology that empowers people everywhere."
Between the lines: The lawsuit alleges specific cases of individuals who left Apple for OpenAI violating certain policies, but it is light on citations of evidence that OpenAI directed the espionage.
- Apple believes, per the lawsuit, that the discovery process will unearth more.
What we're watching: The New York Times reported last month that OpenAI was leaning towards an IPO next year, rather than this.
- The core reason for a delay is likely to be financials and market sentiment, but this lawsuit adds new uncertainty at a time when the company is going through significant changes.
