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AI device startup that sued OpenAI and Jony Ive is now suing its own ex-employee over trade secrets

SAN FRANCISCO COUNTY, CALIFORNIA, JUL 10 – iyO Inc. accuses former executive Dan Sargent of leaking confidential AI hardware designs amid ongoing legal battles involving trademark and trade secret disputes.

  • Tech startup iyO Inc. has filed a lawsuit against a former employee for allegedly leaking confidential product information and drawings related to their AI device.
  • IyO has previously sued Jony Ive and OpenAI CEO Sam Altman for trademark infringement regarding a hardware collaboration.
  • Sam Altman described iyO's lawsuit as a 'silly, disappointing and wrong' move on social media.
  • The lawsuit stems from a belief that the former employee was preyed upon by those in power.
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AI device startup that sued OpenAI and Jony Ive is now suing its own ex-employee over trade secrets

A secretive competition to build a new way of communicating with artificial intelligence chatbots is getting a messy public airing as OpenAI fights a trademark dispute over its stealth hardware project with legendary iPhone designer Jony Ive.

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Winnipeg Free Press broke the news in Winnipeg, Canada on Thursday, July 10, 2025.
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