AMD had landed a contract for supplying parts for both PS4 and Xbox 720, but there has been an industrial espionage.
It has been said that the company has sued former employees for stealing lots of documents and one of them featured next-gen contracts which could potentially be into the hands of their competitors (possibly Nvidia) right now.
When a new generation arrives there will be plenty of parties willing to buy this information at a massive cost and AMD has sought to stop the flow of information.
Robert Feldstein, Manoo Desai, Nicholas Kociuk, and Richard Hagen have been mentioned in the suit and they are now working at Nvidia. Robert Feldstein was behind the next-gen contracts and naming him in the suit means that AMD is really serious now.
According to AMD’s complaint: “He [Feldstein] transferred sensitive AMD documents, and in the next six months, the three defendants either did the same thing, violated ‘no-solicitation of employees’ promises, or both — all obvious violations of common law, statute, and/or contracts with AMD.”
“AMD claims to have forensic evidence that three of the four defendants transferred more than 10,000 confidential files in total, with the names of the files in question matching “either identically or very closely to the names of files on their AMD systems that include obviously confidential, proprietary, and/or trade secret materials related to developing technology.”
AMD may end up suing Nvidia if things escalate because all these employees work for the company now. AMD is also on the verge of bankruptcy and things really aren’t looking too good for them.