Apple's trade secret lawsuit against OpenAI on Friday could 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."
• In other words, Apple is claiming its trade secrets are being used in the development of OpenAI's yet-to-be-unveiled device — and wants that process to stop.

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.

• In response, OpenAI said it has "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 or market sentiment, rather than a yet-to-launch hardware product. But this lawsuit adds new uncertainty at a time when the company is going through significant changes. And as the Samsung-Apple lawsuit a decade ago shows, a trade secret case could take years to litigate.

Pophouse Entertainment, which owns the music rights of KISS and Cyndi Lauper, took a 50% stake in Iron Maiden's publishing and music master rights, they announced Tuesday.

Why it's the BFD: Heavy rock and metal is experiencing a resurgence, as Gen Z's discover the genre.

By the numbers: Streaming of hard rock songs were up over 12% halfway through 2025 — compared to 5% growth for all genres stateside, according to Luminate.

• The deal also includes a stake in Iron Maiden's name, image, and likeness rights. Terms were not disclosed.

The bottom line: "The catalogs of legacy acts typically generate less revenue from streaming and more from physical sales, airplay spins, concerts, merchandise sales and licensing their music for other media, like concert films, video games and comic books, all of which Maiden has done." — Billboard

🚑 Chai Discovery, an AI drug discovery company, raised $400m at a $3.8b valuation. Index Ventures led, joined by Kleiner Perkins, Sequoia Capital, Dimension, Bain Capital Ventures, Thrive Capital, OpenAI and Yosemite. axios.link/4fiZau0

• LimX Dynamics, a Chinese humanoid robotics company, raised $200m at a $2.2b valuation from investors including Stone Venture, GGG and Redstone VC. axios.link/4vwyWdx

• PixVerse, a Singapore-based video-generation startup, raised $439m in Series C funding at a $2b valuation led by CDH Investments. axios.link/4wFjgph

• Emerald AI, a maker of data center management software, is in talks to raise at least $100m at a $1b valuation, per Axios Pro. Its investors include Amplo, CRV, Earthshot Ventures, Energy Impact Partners. axios.link/4bIoIzw

🚑 Contraline, a Charlottesville, Va.-based maker of male contraceptives, raised $92.5m in Series B funding co-led by BVF Partners and RA Capital Management, joined by GV (Google Ventures), Lumira Ventures, and Invus. axios.link/4yAvotA

• Singularity, a drone countermeasure company, raised $80m in Series A funding at a $400m valuation. Khosla Ventures and Felicis led, joined by New Enterprise Associates, AE Ventures, Harpoon Ventures, Menlo Ventures, Long Journey, New Vista Capital, YCombinator, Sunflower and Decisive Point. axios.link/4gDc08C

• Nous Research, an open-source agent startup, is set to raise at least $75m at a $1.5b valuation led by Robot Ventures, per TechCrunch. USV joined. axios.link/4wKTZtZ

• State Affairs, a Washington D.C.-based AI platform for regulatory information, raised $70m. Investors include Founders Fund, Khosla Ventures, Tru Arrow Partners, Alumni Ventures, Marcus Brauchli (former Executive Editor of The Washington Post) and Alex Mather & Adam Hansmann (Founders of The Athletic), and Richard Sarnoff (Chairman of Media, Education and Entertainment at KKR). stateaffairs.com

🚑 Draig Therapeutics, a neuropsychiatric therapies biotech, raised $65m in Series B funding led by Deep Track Capital, joined by Janus Henderson Investors, Marshall Wace, British Business Bank and Jefferson Life Sciences. axios.link/4w17dCB

• Instalily AI, a NYC-based maker of an AI forward deployed engineer, raised a $60m Series B led by Energize Capital per Axios Pro. Insight Partners, Home Depot Ventures and United Rentals joined. axios.link/4aTYudb

🚑 Drug Farm, a Shanghai and Albany, N.Y.-based infection and immunological diseases company, raised $55m in Series D funding led by Shanghai Pudong Leading Area Investment Center and Shanghai Puxing Collaborative Private Equity Fund Partnership Enterprise, with participation from Tukar Capital, Fuzhou Xinhe Fund, Shenzhen Luohu Donghai Chempartner Investment Fund, and Keyuan Pharma. axios.link/4fz4Ykc

• Valarian, a London-based software layer for governments and enterprises, raised a $50m Series A led by NEA. axios.link/3RAzAsq

🚑 Corner Health, an L.A.-based platform for Nurse Practitioners to start their own practices, raised $32.5m in Seed and Series A funding. Oak HC/FT led the A, joined by First Round Capital and Zigg Capital. axios.link/3T0mHbA

• Raxio Group, an Africa-focused data center company, raised $30m in extended funding, taking its total raised to $380m. Roha and Meridiam invested. axios.link/4gx6TXD

• Hadrius, an NYC-based fintech compliance software startup, raised $22m in Series A funding, per Axios Pro. CRV led, joined by Y Combinator. axios.link/4plc1QL

• Flexell Space, a South Korean developer of space solar solutions, raised $20m in Series A funding. InterVest, L&S Venture Capital, and QUAD Ventures, Mirae Asset Venture Investment, Mirae Asset Capital, Industrial Bank of Korea, NH Venture Investment, IBK Securities–Seoul ZV, Korea Investment & Securities, and the Korea Credit Guarantee Fund invested. axios.link/4gVvfKX

• Keyper, a UAE-based proptech, raised $11m in Series A funding round led by Speedinvest, joined by NeoVentures (Mashreq's venture fund), Middle East Venture Partners, Dubai Future District Fund, Property Finder, Arab National Bank, Ellington Properties Development LLC, Dar Ventures and Abbey Road Investment Group. axios.link/4vnrFfX

• Guthrie AI, a Philadelphia-based construction bidding platform, raised a $4m seed led by Chicago Ventures. axios.link/4aRk0zj

• AE Industrial Partners acquired Powder Alloy Corporation, a Loveland, Ohio-based provider of engineered metallic, ceramic, and thermal spray powders. axios.link/4pCiIhP

• Marco Sealing Solutions, backed by Align Capital Partners, acquired Rocket Seals, a Denver-based O-rings and sealing products distributor. axios.link/4fAVQvm

⚡A Blackstone-led consortium is investing $5.34b in Williams (NYSE: WMB) to fund five power projects. Apollo and KKR are also participating. axios.link/4f94HVf

• Ferguson Enterprises (NYSE: FERG) agreed to acquire FloWorks International, a Houston-based critical flow control products company, for $1.6b in cash from Wynnchurch Capital. Clearlake Capital retains a stake. axios.link/4x0jx6z

• Harith General Partners received approval from South African regulators to acquire FlySafair. axios.link/4phfu2K

• Investment Management Corporation of Ontario and GCM Grosvenor acquired a 25% stake in TIP Group, a European transportation equipment leasing and services platforms, from I Squared Capital. axios.link/4vyDyjt

🚑 Kaltroco invested in Smile America Partners, a Farmington Hills, Mich.-based mobile school dental program. Beach Point Capital Management exited. axios.link/4fBpYWD

• Mill Point Capital agreed to acquire Total Safety Supplies & Solutions, a Houston-based distributor of industrial maintenance, repair, and operations products. axios.link/4gvhIcG

• Odyssey Investment Partners made a majority investment in TransPak, a Silicon Valley-based packaging solution for data center, semiconductor, aerospace and defense, and medical customers. axios.link/3RzESEA

• Safety Management Group, a portfolio company of Gryphon Investors, acquired CrossSafety, a Canadian health, safety and environmental services provider. axios.link/4haCHlh

• Seidler Equity is weighing a sale of Rawlings Sporting Goods Co., a maker of baseball apparel and equipment, per Bloomberg. axios.link/4fddNit

• Tavoron, backed by Fusion Capital Partners, acquired Fluidraulics, a automation component and system distributor. axios.link/44r4vuc

🚑 A Warburg Pincus-led group has agreed to acquire a controlling stake in to PANTHERx Rare, a Pittsburgh-based rare disease pharmacy, for about $7b, from investors including General Atlantic, and The Vistria Group. Nautic Partners will stay a shareholder. axios.link/4w2sAUj

🚑 Avere Therapeutics, an oral therapies biotech, agreed to go public via reverse merger with NextCure (Nasdaq: NXTC). The new company will be named Avere Therapeutics and trade on the Nasdaq as "AVRX." axios.link/4bsmRyL

• Samsung (KRX: 005930), a South Korean electronics and chip company, is in early talks about a potential listing in the U.S., per Bloomberg. axios.link/3RAjOhh

12 states are suing to challenge Paramount's $81b takeover of Warner Bros. axios.link/4aUj797

🌍 Airhive, a London-based carbon capture startup, acquired Carbyon, its Dutch competitor. axios.link/3Tz29qJ

• First Hawaiian agreed to acquire TriCo Bancshares, a Californian bank, for $2b in stock. axios.link/4yjWSn4

• TransDigm (NYSE:TDG) withdrew its planned $960m acquisition of Stellant Systems, a portfolio company of Arlington Capital Partners after the DOJ moved to block the transaction. axios.link/4pi20nv

• Watches of Switzerland (LON:WOSG) has held talks to go private, per Reuters. axios.link/4wLh0wR

• CalSTRS is committing $2b to Nuveen's Energy Infrastructure Credit strategy. axios.link/4fxTuxs

• Citation Capital, a Dallas-based private equity firm raised $1.2b for its debut fund. citation.capital

• FIMI raised $1.75b for its eighth fund. axios.link/4h5dkRS

• Warren Equity Partners Manager closed its fifth fund with $2.8b. axios.link/4yjgfN4

Editor's note: Today's edition includes a corrected note on Citation Capital's debut fund, which raised $1.2b (not $1.1b).

• Dextra Partners hired Tyler Donofrio as vice president. He was previously at Churchill Asset Management. axios.link/4w3nuHq

• Garnett Station Partners promoted David Dragich and Rafi Haramati to partner; Mike Drittel to managing director; Will Edmonds to principal; and Sam Abbatacola to vice president. axios.link/44sKe7y

The Consumer Price Index rose 3.5% in the 12 months through June, down from 4.2% in May.

• That's the largest one-month decrease since April 2020.