Apple sues OpenAI over trade secrets; SK Hynix IPO falters
Apple's trade secret lawsuit against OpenAI signals a fracturing of AI alliances, while a sharp selloff in SK Hynix shares highlights mounting investor fears of a memory chip oversupply.
Apple filed a lawsuit on Friday accusing OpenAI, two former employees, and hardware firm io Products of systematically stealing trade secrets related to unreleased products and supply chain details. The 41-page complaint from the $4.6 trillion iPhone maker targets io Products, a design firm acquired by OpenAI last year and co-founded by Apple’s former design chief, Jony Ive.
The legal action marks a dramatic reversal for two companies that previously collaborated to integrate ChatGPT into Apple’s software. That partnership deteriorated, leading Apple to announce a shift to Google for its Apple Intelligence features in January. “OpenAI’s nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets,” Apple stated. OpenAI denied the allegations, telling reporters, “we have no interest in other companies’ trade secrets. We remain focused on building innovative technology that empowers people everywhere.”
Chip volatility
In the semiconductor market, SK Hynix experienced severe trading whiplash following the largest-ever US initial public offering by a foreign company. The memory chipmaker raised $16.5 billion on the Nasdaq, seeing its shares jump 13% in New York before sliding 12% in Seoul on Monday.
The selloff underscores rising concerns that the highly cyclical memory industry is barrelling toward oversupply. SK Hynix and rival Samsung recently committed hundreds of billions of dollars to new South Korean manufacturing plants, and SK Group’s chairman hinted at a potential second US facility in Indiana. Despite the recent pullback, the company’s shares have still tripled this year, a rally that has helped push the broader Kospi Index up 77% year to date.
Infrastructure risks
The physical toll of the AI boom is also drawing regulatory scrutiny. Officials in Cheyenne, Wyoming, blamed a Meta contractor for contaminating the town’s recycled water system with a rare bacterium during the construction of a 715,000-square-foot data center campus.
The bacterium was isolated to irrigation systems and did not reach the drinking water supply, but the incident forced the city to revoke Meta’s discharge privileges. Meta stated it is supporting its general contractor, Fortis, in resolving the issue, adding, “Meta is committed to being a good neighbor in Cheyenne.” The clash reflects broader public resistance to AI infrastructure; a recent Gallup poll showed 70% of Americans oppose local data center construction, with half citing environmental concerns.
