Litigation could pause OpenAI device plan

• 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.