SAN FRANCISCO, July 10:
The legal feud surrounding a secretive AI hardware project has intensified, as AI device startup iyO Inc. has filed a lawsuit against one of its former employees, accusing them of leaking a confidential product design related to the company’s unreleased AI communication device.

This latest development follows iyO’s high-profile trademark lawsuit against OpenAI CEO Sam Altman and renowned designer Jony Ive, over an alleged infringement related to their stealth AI hardware collaboration. iyO claims the name and design elements of their upcoming device were improperly used by Altman and Ive’s project, which aims to reinvent how humans interact with AI — moving beyond screens and smart speakers like Alexa.

At the heart of the dispute lies a race to define the next-generation AI interface, one that enables natural, screen-free interactions with artificial intelligence. Industry insiders believe the winner of this innovation race could gain a massive commercial edge.

“This isn’t just about a name or a design — it’s about who gets to shape how people talk to AI in the future,” said a source familiar with the lawsuit.

While OpenAI and Ive have yet to publicly comment on the trade secrets allegation, the company confirmed it is “vigorously defending its intellectual property and strategic vision.”

The case highlights rising tensions in the fast-growing AI hardware space, where competition is increasingly steep, secretive, and litigious.