Apple Sues OpenAI, Alleging the AI Company Stole Trade Secrets

SPEAKER_1 (0:00)

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Alex Ossola (0:34)

We have new reporting on worries that the new Air Force One lacks defensive capabilities. Plus, President Trump says he won't sign a landmark bipartisan housing bill. And Hollywood is minting new millionaires as it turns to YouTube for the next horror hit.

Ben Fritz (0:48)

It's actually very hard to make money from a viral creation online. It kind of escapes your control.

Alex Ossola (0:53)

It's Friday, July 10th. I'm Alex Ossola for The Wall Street Journal. This is the PM Edition of What's News, the top headlines and business stories that move the world today.

We start today's show with a lawsuit between two tech giants. Apple has sued OpenAI and one of its top executives, alleging the AI company stole trade secrets. The civil suit accuses OpenAI of taking Apple's confidential information as part of its effort to develop competing devices. Two OpenAI staffers named in the suit, OpenAI's chief hardware officer and a member of its technical staff are former Apple employees. OpenAI did not immediately respond to a request for comment. The Wall Street Journal's parent company, News Corp, has a content deal with OpenAI.

More Americans are testing positive for marijuana in workplace drug tests. Quest Diagnostics ran around 8 million of those drug tests last year, and about 4.4 percent of them came back positive. That's up from 3.9 percent in 2021

More states and cities in the US have legalized marijuana, which means a positive test isn't as big a deal to employers. It can still matter for some jobs like trucking or construction. But these days, more employers say marijuana is like alcohol. It's fine if you're doing it off the clock. In fact, an employment lawyer says some jobs have stopped screening applicants for marijuana altogether because it would be harder for them to find qualified candidates.

In China, a fire at a shoe factory in the southeastern part of the country killed at least 28 people yesterday. It's the latest in a string of fatal industrial accidents. An explosion in a coal mine in May killed more than 80 people, while a blast at a fireworks factory in central China claimed 37 lives. Experts say China's factory conditions have improved over the years, but it's still a huge problem, with more than 18,000 deaths from workplace accidents last year. Separately, Chinese state media said today that the country had launched and crucially partially recovered a space rocket. It was the first time China has successfully displayed its rocket recovery technology. WSJ China Economics reporter Katrina Northrup says it's an important milestone as Beijing seeks to transform itself into a space power and to compete with the US.

Katrina Northrup (3:09)

China has been investing a huge amount into space and encouraging their private space companies to do more satellite launches. And this shows that China is rapidly catching up to the US. Recovering a rocket is important because it makes satellite launches a lot cheaper. If you can recover part of the material, then you can reuse it in the next launch.

SpaceX has been doing this for more than a decade, and that's really enabled them to do many, many launches at a cheaper cost. China hasn't been able to do that until today. And so there is still a real gap between the two countries.

Alex Ossola (3:55)

We have three updates from the aviation industry. Delta says revenue in the second quarter rose 19 percent, and CEO Ed Bastion said travel demand is strong, even with airfares rising. In an interview on CNBC Today, he added that ticket prices haven't risen as much as overall inflation, and that airfare is a, quote, tremendous bargain.

Ed Bastion (4:15)

If you look at post-COVID, airfares for the industry are 10 to 15 percent lower than what average CPI has been. So if people are having concerns with respect to airfares, they have much higher concerns with respect to other products, which maybe is a reason why the demand continues to stay strong for us.

Alex Ossola (4:31)

Overall profit fell by about a quarter, however, to 1.6 billion dollars. The rising cost of fuel and other items outpaced the revenue jump. The company is sticking to its previous guidance for the full year.