[00:02] In 2024, Apple and OpenAI got married in a shotgun wedding on stage at WWDC. Tim Cook put ChatGPT inside the iPhone while Sam Altman watched from the audience. They were the unambiguously gay duo, and together they thought they could rebrand
[00:14] artificial intelligence to Apple intelligence with a marketing campaign Android phone. But it only took 2 years for these two companies to become mortal enemies. Last Friday, Apple filed a 41-page lawsuit calling OpenAI's
[00:28] hardware business rotten to its core. With bombshell allegations of trade secret theft, behind the scenes Scam Altman was doing what Scam Altman does best, is scamming, allegedly. What Apple failed to realize is that he doesn't
[00:40] just want to do business with Apple, he wants to eat the apple. In today's video, we'll take a look at OpenAI's hardware strategy and the craziest claims in this lawsuit. It is July 17th, 2026, and you're watching The Code
[00:52] Report. Apple is terrified of OpenAI. OpenAI has already poached over 400 Apple employees, but more importantly, OpenAI has plans to get into the hardware game. Not long ago, they bought Jony Ive's stealth startup IO for $6.5
[01:06] billion. That's over $3 billion per lowercase letter. Jony Ive spent about 30 years at Apple and worked closely with Steve Jobs to create the visual language for the iPhone, iMac, iPod, and so on. But now he's working with Sam on
[01:19] obsolete. And no official details have few days ago, and apparently this futuristic device is a mobile screen-free home smart speaker. A quote, OpenAI believes the product's defining
[01:32] feature will be its personality and ability to connect on a human-like level with users. The speaker incorporates mechanical elements that can move on their own, creating a sense that it's alive and not just an object responding
[01:44] sounds like they're basically just building an Alexa smart speaker with Johansson in the Jony Ive design language. But I highly doubt that's going to be a be a product because I've watched every single Husk IRL video.
[01:58] watched every single Husk IRL video. >> Tell me a fun fact about Mike. >> Sure, a fun fact about Mike Hogg is that he and Tony grew up surfing together. playing fair when it comes to their hardware strategy, which brings us to
[02:11] last Friday when Apple filed the divorce papers accusing OpenAI of trade secret theft at every level. The lawsuit names OpenAI IO and two ex-Apple employees including Tang Tan, OpenAI's hardware chief, and former Apple vice president.
[02:26] The lawsuit claims that Tan told Apple engineers interviewing at OpenAI to bring {quote} actual parts for show and tell. Most interviews like this just have you invert binary tree, but at OpenAI they want you to show up with
[02:38] stolen prototypes. But it gets better because Apple says OpenAI also circulated a cheat sheet teaching recruits how to dodge the dreaded escorts you out the door the moment you resign. And that's important to OpenAI
[02:51] weeks to work at Apple and steal confidential data from them. But now the worst spy in corporate history. This guy was a senior electrical engineer at Apple who got the job at OpenAI and then
[03:04] found an authentication bug in Apple systems. He celebrated it on unencrypted channels and texting a co-worker, {laugh out loud} I found out I can access the network storage, so funny. To which she replied, I'm ready. And what's even
[03:16] better is he allegedly did the accessing from her Apple-issued work laptop, which Apple and collected on your way out. Then, hours after quitting, he allegedly texted, I still have another computer, referring to a second Apple machine that
[03:30] quit. And he would have gotten away with it, too, had Apple not found that message on the company laptop. And this whole situation has proved that just doesn't necessarily mean that you're also going to be a 10x criminal. But at
[03:44] bad for Apple because you might remember 50 years ago is Steve Jobs went on a tour of Xerox Park. And after seeing things like the GUI and the mouse, he then he stole this quote from Picasso, "Good artists copy, great artists
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[04:50] for watching, and I will see you in the next one.