by 
Welcome back to our weekly roundup of happenings from XR and AI realms. Let’s dive in…
The Lede
Apple Sues OpenAI Over Alleged Trade Secret Theft. Apple has filed a federal lawsuit accusing OpenAI of systematically recruiting key hardware engineers and misappropriating trade secrets as the AI company races to develop its first consumer hardware device. The complaint alleges OpenAI hired more than 400 former Apple employees, including former Chief Hardware Officer Tang Tan, and describes interview sessions in which candidates were allegedly encouraged to bring proprietary Apple components. Apple also claims former engineer Chang Liu retained a company laptop and downloaded confidential files before departing, while alleging OpenAI coached employees on avoiding internal security protocols.
Feeling Spatial
EssilorLuxottica Acquires Lynx. EssilorLuxottica, the eyewear giant behind Ray-Ban Meta smart glasses, has acquired French mixed reality startup Lynx. Founded by Stan Larroque, Lynx developed the standalone Lynx R-1 headset and had been working on its next-generation R-2 platform before financial challenges threatened the company’s future. The acquisition preserves Lynx’s engineering talent and optical technologies while giving EssilorLuxottica additional expertise as it expands its smart eyewear ambitions. This one is a bit of a head-scratcher to me. The price is rumored to be just $40 M so in their calculus it’s worth it for the people and the technology.
Lenovo Scales Back Its VR Business. Lenovo is following a move made by HTC when it shed its VR division to focus on smart glasses instead. Lenovo’s reportedly been cutting back (cutting people) in its virtual reality division. The company cited slow enterprise adoption and increasing competition from AI-powered smart glasses. Lenovo remains active in mixed reality through enterprise partnerships, but clearly sees better growth opportunities in VR. But are we bailing too soon on VR? Won’t vibe-coding on game engines reduce the friction of spatial content creation?
A.R. Rahman, the two-time Academy Award-winning composer behind Slumdog Millionaire and 127 Hours, is launching ARR Immersive for Apple Vision Pro on July 22. Built exclusively for visionOS, the app features original spatial audio experiences, including Kathak dance performances paired with Western classical compositions presented in Apple’s ASAF format. It also includes exclusive content from Le Musk, Rahman’s acclaimed VR film, and ARR Live, a collection of immersive concert performances. Additional experiences are already in production and will be released in future updates. iPhone users can click this link to TestFlight link for early access.
The AI Desk
Open AI Hardware Reveal. New reporting from The Verge provides the clearest picture yet of OpenAI’s first consumer hardware product, being developed with former Apple design chief Jony Ive. Rather than competing directly with smartphones, the device is reportedly designed as a context-aware AI companion that remains continuously available without relying on a traditional display. The product is expected to integrate closely with ChatGPT while emphasizing ambient computing over conventional mobile interfaces.
DeepMind’s Demis Hassabis Calls for Global AI Rules. Google DeepMind CEO Demis Hassabis is urging governments to establish international agreements governing advanced artificial intelligence before systems become significantly more capable (AGI). Speaking at the Aspen Ideas Festival, Hassabis compared AI governance to existing international frameworks for nuclear technology, arguing that countries will eventually need coordinated oversight as frontier models become more powerful. While cautioning against regulations that could stifle innovation, he said voluntary commitments alone will not be sufficient over the long term. His comments add another influential voice to the growing debate over balancing rapid AI development with global safety standards.
PixVerse Creator Raises at More Than $2 Billion. AI video startup PixVerse has raised $439 million in new funding, pushing its valuation above $2 billion as competition intensifies among companies developing generative video platforms. The company has attracted attention for producing high-quality, consumer-friendly video generation tools that compete with offerings from OpenAI, Google, Runway, and ByteDance. The financing reflects continued investor confidence in an ever crowded field. We track over 190 gen-AI tools here. This category is overdue for some serious consolidation.
Spatial Audio
This column has a companion, the AI/XR Podcast, hosted by its author, Charlie Fink; Ted Schilowitz, former studio executive and futurist for Paramount and Fox; and Rony Abovitz, founder of Magic Leap and Synthbee AI.
Last week’s guest was Justin Barad, founder of OssoVR, a surgical simulation platform widely used in medical schools today (see episode below). Our guest this week is Irena Cronin, CEO of Infinite Retina, an AIXR consulting company.
Episodes drop on Tuesdays, and you can find them on podcasting platforms Spotify, iTunes, and YouTube.
Charlie Fink
AR Insider Contributor