OpenAI's AI Hardware Ambitions Hit Legal Snag: Trademark Dispute Halts 'io' Branding

Court filings reveal OpenAI and io's early work on an AI device | TechCrunch

Legal filings submitted earlier this month from lawyers representing OpenAI and Jony Ive's io reveal new details about the companies' efforts to build a mass-market AI hardware device. The filings are part of a trademark dispute lawsuit filed this month by iyO, a Google-backed hardware startup developing custom-molded earpieces that connect to other devices. Over the weekend, OpenAI pulled promotional materials related to its $6.5 billion acquisition of Jony Ive's io startup in order to comply with a court order involved in the suit. OpenAI says it's fighting iyO's allegations of trademark infringement. For the last year, OpenAI executives and former Apple leaders now working at io have vigorously researched in-ear hardware devices, according to filings submitted in iyO's lawsuit. In a June 12 filing, lawyers representing OpenAI and io said the companies purchased at least 30 headphone sets from various companies to explore what's on the market today. In recent months, OpenAI and io executives also met with iyO's leadership, and demoed their in-ear technology, according to emails revealed in the case. That said, OpenAI's first device in collaboration with io may not be a pair of headphones at all. Tang Tan, a longtime Apple executive that co-founded io and serves as the startup's chief hardware officer, claims in a declaration to the court that the prototype OpenAI CEO Sam Altman mentioned in io's launch video "is not an in-ear device, nor a wearable device." Tan notes that the design of said prototype in not yet finalized, and that the product is at least a year away from being advertised or offered for sale. The form factor of OpenAI and io's first hardware device has largely remained a mystery. Altman merely stated in io's launch video that the startup was working to create a "family" of AI devices with various capabilities, and Ive said io's first prototype "completely captured" his imagination. Altman had previously told OpenAI's employees at a meeting that the company's prototype, when finished, would able to fit in a pocket or sit on a desk, according to the Wall Street Journal. The OpenAI CEO reportedly said the device would be fully aware of a user's surroundings, and that it would be a "third device" for consumers to use alongside their smartphone and laptop. "Our intent with this collaboration was, and is, to create products that go beyond traditional products and interfaces," said Altman in a declaration to the court submitted on June 12. Lawyers representing OpenAI also said in a filing that the company has explored a wide range of devices, including ones that were "desktop-based and mobile, wireless and wired, wearable and portable." While smart glasses have emerged as the front-runner for AI-enabled devices, with companies like Meta and Google racing to develop the first broadly adopted pair, several companies are also exploring AI-enabled headphones. Apple is reportedly working on a pair of AirPods with cameras, which would help power AI features by gathering information about the surrounding environment. In recent months, OpenAI and io executives have done considerable research into in-ear products. On May 1, OpenAI's VP of Product, Peter Welinder, and Tan met with iyO's CEO, Jason Rugolo, to learn more about iyO's in-ear product, according to an emailed invitation revealed in the case. The meeting took place at io's office in Jackson Square, the San Francisco neighborhood where Ive has bought several buildings to work on LoveFrom and io. At the meeting, Welinder and Tan tested out iyO's custom-fit earpiece, but were disappointed when the product failed repeatedly during demonstrations, according to follow-up emails revealed in the case. Tan claims in his declaration that he met with Rugolo as a courtesy to his mentor, longtime Apple executive Steve Zadesky, who recommended he take the meeting. Tan also claims he took several precautions to avoid learning too much about iyO's IP, such as suggesting that his lawyers review materials before he does. However, it seemed that OpenAI and io employees thought they could learn something from one of iyO's partners. To customize its in-ear headsets, iyO sent a specialist from an ear-scanning company, The Ear Project, to someone's home or office to get a detailed map of someone's ear. In one email revealed in the case, Marwan Rammah, a former Apple engineer that's now working at io, told Tan that purchasing a large database of three-dimensional scans from The Ear Project could give the company a "helpful starting point on ergonomics." It's unclear if any such deal took place. Rugolo tried repeatedly to forge a deeper relationship between iyO, io, and OpenAI -- but largely failed, according to the emails. He pitched OpenAI on launching iyO's device as an early "developer kit" for its final AI device. He pitched OpenAI on investing in iyO and, at one point, even offered to sell his entire company for $200 million, the filing say. However, Tan said in his declaration that he declined these offers. Evans Hankey, former Apple executive turned io co-founder and chief product officer, said in a declaration to the court that io is not working on a "custom-molded earpiece product." The ChatGPT-maker seems to be more than a year out from selling its first hardware device, which may not be an in-ear product whatsoever. Gven what the company said in this lawsuit, it appears it is also exploring other form factors.

OpenAI and Jony Ive's 'io' brand has vanished, but their AI hardware deal remains

Hayden Field is The Verge's senior AI reporter. An AI beat reporter for more than five years, her work has also appeared in CNBC, MIT Technology Review, Wired UK, and other outlets. OpenAI has scrubbed mentions of io, the hardware startup co-founded by famous Apple designer Jony Ive, from its website and social media channels. The sudden change closely follows their recent announcement of OpenAI's nearly $6.5 billion acquisition and plans to create dedicated AI hardware. OpenAI tells The Verge the deal is still happening, but it scrubbed mentions due to a trademark lawsuit from Iyo, the hearing device startup spun out of Google's moonshot factory. The announcement blog post and a nine-minute video featuring Ive and OpenAI CEO Sam Altman are no longer available. The blog post from Ive and Altman announcing the deal said, "The io team, focused on developing products that inspire, empower and enable, will now merge with OpenAI to work more intimately with the research, engineering and product teams in San Francisco." OpenAI spokesperson Kayla Wood: This page is temporarily down due to a court order following a trademark complaint from iyO about our use of the name 'io.' We don't agree with the complaint and are reviewing our options.

OpenAI's hardware plans with Jony Ive just hit a legal snag

Last month, OpenAI announced it was officially getting into the hardware business. In a video posted to X, CEO Sam Altman and former Apple designer Jony Ive, who worked on flagship products like the iPhone, revealed a partnership to create the next generation of AI-enabled devices via a startup called io. But that launch appears to have hit a snag. Also: Is ChatGPT Plus really worth $20 when the free version offers so many premium features? On Tuesday, evidence of the partnership was scrubbed from the internet (except for the above video, for now). OpenAI has updated its original announcement page, stating that it is "temporarily down due to a court order following a trademark complaint from iyO about our use of the name 'io.' We don't agree with the complaint and are reviewing our options." (Disclosure: Ziff Davis, ZDNET's parent company, filed an April 2025 lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.) iyO sues OpenAI The initiator of the complaint, iyO, is the maker of AI-powered wearables, specifically iyO One, a set of earbuds that the company website says are meant to be a "computer without a screen." iyO One can run apps the way a smartphone does and take natural language commands from the user. Bloomberg Law reported that iyO has sued OpenAI over the trademark. Also: ChatGPT can now sum up your meetings - here's how to use it (and who can) Founded by Ive, io is (or was) an under-the-radar startup focused on AI devices. On acquiring the startup in a nearly $6.5 billion all-stock deal, Sam Altman said he envisions creating a daily AI companion device as common as a laptop or smartphone. As part of the deal, Ive and those at his design firm, LoveFrom, are slated to remain independent but will take on creative roles at OpenAI. The deal is still on In a post on X, Mark Gurman said the deal is still on despite the hiccup. "The io team, focused on developing products that inspire, empower, and enable, will now merge with OpenAI to work more intimately with the research, engineering, and product teams in San Francisco," OpenAI wrote in the now-down blog post about the merger. The post did not offer many more details, but Altman and Ive appear focused on making the user experience of products like ChatGPT more seamless and intuitive than accessing them through traditional internet and technological interfaces. Also: You can now generate images with ChatGPT on WhatsApp - here's how "I want this to be democratized, I want everyone to have it," Altman said in the launch video, referring to the hardware OpenAI aims to build under the new partnership. Earlier in May, OpenAI moved to become a Public Benefit Corporation (PBC), announcing the shift with similar language about making AI accessible to as many people as possible and focused on social betterment goals. Historically, technology of that caliber takes a while to become truly accessible and intuitive for large groups of people to use, and current AI devices like the iPhone 16 require specific, expensive hardware to run. Emphasizing how scientists use OpenAI models to accelerate breakthroughs, Altman added in the video that he hopes forthcoming AI hardware opens up an "embarrassment of riches of what people go create for collective society." OpenAI's interest in hardware The merger follows several hints from earlier this year signaling OpenAI's interest in hardware like wearables and robotics. With most major hardware providers launching AI-powered smartphones (despite a few drawbacks), laptops, and other tech, the space is moving quickly. On the more experimental end of that spectrum, AI devices like Humane Pin and Rabbit R1 haven't exactly succeeded, though health wearables that make use of AI for big-picture insights are taking off. Also: How to use ChatGPT to write code - and my top trick for debugging what it generates It's unclear what hardware category OpenAI will target first. The video notes that the two companies won't release anything until likely next year, though Altman vaguely mentions a prototype of an initial product in the video that he says is "the coolest piece of technology that the world will have ever seen." It's unclear how significantly this lawsuit will impact any launch timelines. According to the Wall Street Journal, Altman and Ive have discussed camera devices and headphones as possible products, but nothing is confirmed yet. In a leaked recording, Altman told employees on Wednesday that he and Ive plan to ship 100 million AI "companions" that would be part of a user's everyday life and aware of their surroundings, small enough for a pocket or desk, and as essential as a laptop and smartphone.

Sam Altman takes his 'io' trademark battle public

Emma Roth is a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more. Previously, she was a writer and editor at MUO. OpenAI CEO Sam Altman has put a spotlight on private conversations leading up to a rival company suing OpenAI over its upcoming device, io. On Tuesday, Altman posted screenshots of emails on X showing messages between him and Jason Rugolo, the founder of the Iyo hearing device startup that's suing OpenAI. The emails show a mostly friendly exchange where Rugolo asks Altman for his support as Altman discloses a competing device. "I'd love the opportunity to pitch you to invest $10MM in my AI-meets-audio hardware company, iyO," Rugolo wrote in a March 4th message. "We're launching the best possible hardware interface to interact with AI-agents, after having obsessively focused on this problem since 2018." Altman declined the offer because he was "working on something competitive." Then, Rugolo followed up by asking whether OpenAI would like to work with him, to which Altman replied he'd have to ask former Apple designer Jony Ive, who he said was "driving" the launch. OpenAI purchased Ive's AI hardware company for almost $6.5 billion last month. The next emails occurred in May, with Rugolo highlighting some of the fixes Iyo made for some of the "fails" that occurred during a demo shown to the OpenAI team. On May 23rd, days after OpenAI announced its purchase of io -- a name similar to Rugolo's startup -- Rugolo sent Altman another email. "I'm getting blown up on the names situation," Rugolo said. "I wanted to level with you here, I'm feeling a little vulnerable and exposed, david and goliath style. i just wanted to hear from you directly, are you serious and optimistic about potentially bringing us in?" In a May 23rd email, Peter Welinder, OpenAI's VP of product, told Altman that he doesn't "think there's a fit," adding that "Their device [Iyo's] is very orthogonal to ours and doesn't really work yet." On June 22nd, OpenAI suddenly scrubbed the "io" branding from its website, later revealing that it was forced to make the change due to a temporary restraining order granted as part of Iyo's trademark lawsuit, which was filed on June 9th. OpenAI's hardware team testified that the io's hardware isn't "an in-ear device, nor a wearable." In the lawsuit, Iyo alleges OpenAI knew about the startup and its technology before launching io, citing meetings with Altman's investment firm and Ive's LoveFrom design company in 2022. Iyo also claims it shared information about its upcoming device when trying to recruit former Apple designer Evans Hankey, who went on to co-found io. "Jason rugolo had been hoping we would invest in or acquire his company iyo and was quite persistent in his efforts," Altman wrote in his post on X. "We passed and were clear along the way. now he is suing openai over the name. this is silly, disappointing and wrong." Altman's strategy of litigating in the court of public opinion echoes OpenAI's approach to a lawsuit with Elon Musk, which the company has fought partly by dropping email exchanges supporting its side of the story. Musk has made similar moves in court documents. Rugolo responded to Altman's post on X, saying that he didn't want to "fight" in public. "Honestly just think it's super bad form for someone like you to be coming after me like this," Rugolo posted. "I'm looking forward to competing with you fairly on product; you just can't use our name. In another reply, Rugolo expanded on his relationship with Altman prior to the 2025 emails. "When an investor you pitched everything to, especially such a powerful one, tells you they are now doing something competitive... it's just a terrible feeling," Rugolo wrote. "the moment he said he had decided to do something competitive, i should have immediately gotten wise... i got played pretty hard, gave them everything." Though OpenAI currently can't show off the "io" branding, the company has said that its deal with Ive is still happening. OpenAI has asked the court to dismiss the case, calling Iyo's argument "unfounded" and "premature."

OpenAI Takes Down Jony Ive's 'io' References Amid Trademark Dispute

OpenAI has removed all mentions of Jony Ive's startup "io" from its website and social media pages. The scrub follows a court order prompted by a trademark complaint from iyO, a hearing device startup that graduated from Alphabet's X moonshot lab. "This page is temporarily down due to a court order following a trademark complaint from iyO about our use of the name "io." We don't agree with the complaint and are reviewing our options," OpenAI said in an X post on Sunday. Ive's io was founded last year by the former Apple designer to develop next-generation hardware for AI. Last month, OpenAI announced it was acquiring the startup. As of writing, while OpenAI has taken down mentions of io, CEO Sam Altman hasn't. In the launch video still viewable on his X feed, Altman and Ive are seen hyping up new hardware that can make better use of AI. "I think we have the opportunity here to completely reimagine what it means to use a computer," Altman says in the video. According to Bloomberg, the acquisition was to be completed in the summer following regulatory approvals and would have cost OpenAI nearly $6.5 billion. Despite the lawsuit, OpenAI has no plans to drop the acquisition. The deal will go through, a company spokesperson confirmed to The Verge. Once the takeover is completed, OpenAI would merge io's team of 55 hardware engineers, software developers, and manufacturing experts with its teams in San Francisco. Together, they are expected to create a family of AI-powered devices, and the first one is already being tested. "The first one we've been working on...has just completely captured our imagination," Ive said in the video. Altman, who has been testing the prototype at home, says: "I've been able to live with it, and I think it's the coolest piece of technology that the world will have ever seen."

OpenAI and Jony Ive accused of trying to 'bury' rival start-up in trademark dispute

The chief executive of the start-up that forced OpenAI and former Apple design chief Sir Jony Ive to pull down marketing materials about their $6.4bn AI device venture has accused them of trying to "bury" his firm after discussing a potential investment. iyO founder and former Google executive Jason Rugolo told the Financial Times he had been "blindsided" by the launch of io, OpenAI's partnership with Ive to create new AI hardware products, as both companies had previously been in deal talks with his similarly named start-up. "This is a story of corporate aggression, of large companies trying to bury smaller companies," said Rugolo. "If we didn't win the restraining order, this announcement very well could have killed us." The trademark dispute comes just a month after OpenAI revealed plans to acquire Ive's hardware start-up, in a bet on alternatives to the smartphone as the dominant device to access AI. Over the weekend, OpenAI removed a blog post and short video about the deal, following a restraining order by a US federal judge on Friday. OpenAI and LoveFrom, Ive's design firm, have denied any intentional trademark infringement or wrongdoing. "It totally blindsided me: the announcement of a company doing a similar thing with the exact same name," Rugolo said. "They know what they are doing." OpenAI said: "This is a baseless trademark dispute and not a case about stolen ideas or technology. iyO demoed a product in May 2025 that didn't function properly or meet our standards in hopes that we'd acquire iyO. We passed. Jason Rugolo was also well aware of the io name and never raised concerns before our announcement." iyO, spun out of Google's Moonshot lab in 2021, has designed AI earbuds named "iyO ONE", offering what it calls the next wave of consumer hardware. The so-called 'audio computers' have conversational voice assistants plugged into a suite of apps. In a lawsuit filed this month, iyO details how OpenAI's vice-president of product, Peter Welinder, met the start-up twice after Rugolo got in contact with Sam Altman in March. Welinder introduced them to one of Ive's engineers, a former top Apple design executive called Tang Yew Tan. Tan requested that several team members try out the device, according to emails disclosed in the suit. Tan, Welinder, and Evans Hankey -- the former Apple design chief who joined Ive at io -- met with iyO again in May for a presentation of its product, according to the lawsuit. "The context of those meetings was an acquisition," said Rugolo. "They were talking about buying our company. They got everything, right down to how the software stack works. I foolishly trusted them, because I thought we were collaborating and serious about working together." The meetings came three years after an initial round of contacts. In April 2022, iyO said it met Ryan Cohen, an executive at Altman's personal investment fund Apollo Projects, and LoveFrom team member and former Pinterest co-founder Evan Sharp. Both passed on investing at the time. In a statement to the court, Altman said he was not aware of Rugolo or his company in 2023 when io was founded, adding that Rugolo emailed him "out of the blue" in March of this year seeking $10mn in funding. Altman said he passed Rugolo on to the io team "as a courtesy" and to "evaluate any opportunities for collaboration." In his court statement, Tan said he had agreed to meet Rugolo as a favour to a friend, that the demonstration of iyO ONE had failed, that he had refused offers to review the company's intellectual property, and that Rugolo "seemed desperate for cash". Tan claims in the court filings that Rugolo offered to sell the company for $200mn, with Rugolo "raising the issue of the io name in bad faith to try to force a deal with his company." Rugolo told the Financial Times this statement was "100 per cent false" but could have arisen from a misunderstanding, since he was raising capital with a "SAFE" cap of $195mn -- an upper limit on the company's valuation. Rugolo said his start-up had been trying to raise new funding this year as it looked to make a limited launch of 20,000 devices, but said the io announcement had hurt discussions. "It's hard enough to raise money without any competition, and then when you're trying to get hardware funding, which is notoriously difficult [given the existing large industry players]- it's already really hard," said Rugolo. The defendants -- io products, OpenAI, Altman and Ive -- argue that the suit is "premature", as io is "at least a year away from offering any goods or services" so there is "no io product or marketplace context to evaluate". The defence added that io's first product "is not an in-ear device like the one [the] Plaintiff is offering". The trial in the case is scheduled for January 2028, with a preliminary injunction hearing set for October this year to determine whether the trademark infringement ban will continue.

OpenAI scrubs mention of Jony Ive partnership after judge's ruling over trademark dispute

SAN FRANCISCO (AP) -- A budding partnership between OpenAI CEO Sam Altman and legendary iPhone designer Jony Ive to develop a new artificial intelligence hardware product has hit a legal snag after a federal judge ruled they must temporarily stop marketing the new venture. OpenAI last month announced it was buying io Products, a product and engineering company co-founded by Ive, in a deal valued at nearly $6.5 billion. But it quickly faced a trademark complaint from a startup with a similarly sounding name, IYO, which is also developing AI hardware that it had pitched to Altman's personal investment firm and Ive's design firm in 2022. U.S. District Judge Trina Thompson ruled late Friday that IYO has a strong enough trademark infringement case to proceed to a hearing in October. Until then, she ordered Altman, Ive and OpenAI to refrain from "using the IYO mark, and any mark confusingly similar thereto, including the IO mark in connection with the marketing or sale of related products." OpenAI responded by scrubbing its website of mentions of the new venture, including a web page of the May 21 announcement. In its place, the company had a message Monday that said the page "is temporarily down due to a court order" and added: "We don't agree with the complaint and are reviewing our options." IYO CEO Jason Rugolo applauded the ruling Monday in a written statement that said the startup will aggressively protect its brand and tech investments. "IYO will not roll over and let Sam and Jony trample on our rights, no matter how rich and famous they are," Rugolo said. -- -- The Associated Press and OpenAI have a licensing and technology agreement that allows OpenAI access to part of AP's text archives.

Sam Altman calls Iyo lawsuit 'silly' after OpenAI scrubs Jony Ive deal from website

OpenAI Co-Founder and CEO Sam Altman speaks at Snowflake Summit in San Francisco on June 2, 2025. OpenAI CEO Sam Altman on Tuesday criticized a lawsuit filed by hardware startup Iyo, which accused his company of trademark infringement. Altman said, in response to the suit, that Iyo CEO Jason Rugolo had been "quite persistent in his efforts" to get OpenAI to buy or invest in his company. In a post on X, Altman wrote that Rugolo is now suing OpenAI over the name in a case he described as "silly, disappointing and wrong." The suit, earlier this month, stemmed from an announcement in May, when OpenAI said it was bringing on Apple designer Jony Ive by acquiring his artificial intelligence startup io in a deal valued at about $6.4 billion. Iyo alleged that OpenAI, Altman and Ive had engaged in unfair competition and trademark infringement and claimed that it's on the verge of losing its identity because of the deal. OpenAI removed the blog post about the deal from its website, after a judge last week granted Iyo's request for a temporary restraining order to keep OpenAI and its associates "from using Plaintiff's IYO mark, and any mark confusingly similar thereto, including without limitation 'IO.'" "This page is temporarily down due to a court order following a trademark complaint from iyO about our use of the name 'io,'" OpenAI says in a message that now appears at the link where the post had been. "We don't agree with the complaint and are reviewing our options." On X, Altman posted screenshots of emails from Rugolo seeking investment and a transaction involving Iyo's intellectual property. Rugolo also wanted OpenAI to buy Iyo, Altman wrote. Rugolo didn't immediately respond to a request for comment. But on X, he wrote that "there are 675 other two letter names they can choose that aren't ours." The Iyo suit is among several legal challenges facing OpenAI, which is working to evolve its organizational structure to take on more capital as it builds out its AI models. OpenAI also is going up against The New York Times in a copyright infringement case, and separately against Elon Musk, who had helped start OpenAI as a nonprofit in 2015 and is now suing for breach of contract. Iyo is accepting pre-orders for its Iyo One in-ear wearable device that contains 16 microphones. Ive hasn't released details about io's product plans, but Altman told The Wall Street Journal that io's inaugural device is not a smartphone. Altman wrote in another Tuesday post that he wishes the Iyo team "the best building great products," and that "the world certainly needs more of that and less lawsuits."

Here's Why Jony Ive and OpenAI Pulled All the Promos for Their AI Doohickey

At least we know Jony Ive's company isn't making something you'll stick in your ear. Over the weekend, OpenAI removed all promo materials related to its $6.5 billion buddy-buddy partnership with Apple design legend Jony Ive and their still unannounced AI-centric device. This wasn’t a falling out between the two titans in tech, but rather the result of something altogether stranger. The nixed webpages and videos are due to a trademark lawsuit filed by a separate startup, iyO, which is seemingly miffed about the companies names being a single letter apart. On July 20, California federal Judge Trina L. Thompson granted a temporary restraining order against OpenAI that forced it to remove all mentions of Ive’s design company, “io.†You can still find the bromance video of OpenAI CEO Sam Altman and Iveâ€"who helped bring us products like the iMac and iPhoneâ€"on YouTube through unofficial uploads. A page on OpenAI’s site that previously talked up its partnership with Ive now reads: "This page is temporarily down due to a court order following a trademark complaint from iyO about our use of the name “io.†We don’t agree with the complaint and are reviewing our options." What’s the distinction between iyO Inc. and io, other than the inclusion of everybody’s favorite sometimes vowel? iyO also makes “hardware and software allowing users to do everything they currently do on a computer, phone, or tablet without using a physical interface.†Which is to say, it's an AI device company. Jony Ive and several other ex-Apple staff founded io in 2023. Since then, it poached some big-name Apple design stars, though the company hadn’t released any real products in that time. Ive’s design firm, LoveFrom, helped design a button for a separate fashion designer. iyO has been around since 2021, though its latest productâ€"an in-ear headset called the iyO Oneâ€"is still up for preorder. It’s a device that claims to replace apps by letting users talk in natural language to a chatbot that then computes for you. It requires an audiologist to make an impression of your ear and costs $1,000 for a version with Wi-Fi connectivity or even more for a version with LTE. The device maker claimed in its lawsuit it is manufacturing an initial batch of 20,000 units and is still looking to raise more funds. The AI device maker sued IO Products and OpenAI earlier this month and said it was seeking an immediate restraining order and injunction to stop Ive and OpenAI from using their two-letter brand name. iyO claimed it sought some investment from OpenAI and LoveFrom, though Altman told them in March that it was “working on something competitive so will respectfully pass.†“Defendants [AKA OpenAI and Ive] have known about the existence of iyO, the iyO Marks, and the nature of iyO’s technology since at least 2022,†the AI device maker claims in its lawsuit. “Indeed, the parties had a series of meetings with representatives of OpenAI’s principal, Sam Altman, and designers from LoveFrom Inc., a design studio founded by Jony Ive, about the prospect of iyO and OpenAI working together.†For its part, OpenAI said in response to the lawsuit it had decided not to pursue any collab or funding with iyO. The makers of ChatGPT said it surveyed many existing commercial AI devices in the run-up to its May partnership announcement. Ive even went as far as to say the Rabbit R1 and Humane Ai Pin were “very poor products.†The name “io†derives from a tech term referring to “input output,†such as the “IO ports†like USB or HDMI you may find on a typical PC. In a statement published on the opening salvo for the lawsuit, iyO cofounder Justin Rugolo said OpenAI was trying to “trample†on the rights of his “small startup.†Rugolo also claimed he had messaged Altman saying that investors were concerned about confusion surrounding the company’s names. Rugolo complained that OpenAI had previously sued a separate artificial intelligence company, Open Artificial Intelligence, over a similar trademark claim. At the very least, this lawsuit offers a few more slim details about what Ive and Altman have in store. In its response to iyO’s claims, OpenAI said, “io is at least a year away from offering any goods or services, and the first product it intends to offer is not an in-ear device like the one Plaintiff is offering.†OpenAI further suggested whatever spins out of io will be a “general consumer product for the mass market.†It’s unlikely that we’ll see work stop on whatever Ive and co. are working on. There are more hearings surrounding this trademark case slated for the months ahead. The lawsuit offers yet another glimpse into the high-stakes world of AI wearable startups and just how hard it is to come up with a device that can match the versatility of an iPhone. We’ll still have to wait at least a year to see if anybody can cook up something more usable than an earpiece that lets you talk to a chatbot.

OpenAI's Hardware Plans With Jony Ive Just Hit a Legal Wall

Summary OpenAI's hardware venture with Jony Ive is halted due to a trademark infringement lawsuit. Iyo, an ear-worn audio computer company, claims OpenAI's 'io' name will cause confusion. Despite the setback, OpenAI's future hardware plans remain unaffected. We recently learned that not only was OpenAI venturing into hardware, but it was doing so in hand with Jony Ive, famously a former Apple lead designer behind several of the company's products over the past two decades. The hardware is still coming, but it's running into some roadblocks. OpenAI has seemingly scrubbed all mentions of the new venture in partnership with Jony Ive, io, from its online platforms. The move, which included the removal of a high-profile announcement video featuring Ive and OpenAI CEO Sam Altman, comes in response to a trademark infringement lawsuit filed by Iyo, a hearing device company with origins in Google's "moonshot" factory. A complaint was filed by Iyo, Inc., alleging that OpenAI's use of the name 'io' for its new hardware division constitutes a willful infringement of its trademark. Iyo, which is developing an AI-powered, ear-worn audio computer, argues that the similar-sounding name will create significant consumer confusion. The company, a spin-off from Alphabet's experimental X lab, claims it had been in discussions with representatives from both OpenAI and Ive's design firm prior to the acquisition announcement. Not only is the name similar (not identical, in OpenAI's defense, but probably similar enough to get at least some clueless buyers confused), but the company is also developing an AI product, which will certainly create confusion when OpenAI and Ive release their own product. Related OpenAI Will Work on Hardware Products With Jony Ive The former Apple executive wants to make AI-first hardware products. Posts The lawsuit from Iyo seeks an immediate temporary restraining order and a preliminary injunction to prevent OpenAI from using the 'io' name. Iyo contends that the high-profile launch of a similarly named and conceptually related product by a major industry player like OpenAI threatens to overshadow its own years of development and brand-building. Following the lawsuit, a court order forced OpenAI to remove all mentions of the current "io" name, taking the video private as well as all references to the venture, while the matter is being resolved. In a statement, OpenAI acknowledged that the "page is temporarily down due to a court order following a trademark complaint from iyO about our use of the name 'io'." It went on to add that "we don't agree with the complaint and are reviewing our options." It was also clarified that this court order, and probably the ultimate result of the lawsuit, doesn't mess with any of OpenAI's future hardware plans. This makes sense -- the worst thing that can happen is that the court ultimately rules in Iyo's favor and forces the venture to look for a new name, but that should ultimately not be important since products should still result from it. Don't be surprised if we see a new name within the next few months, though. Source: OpenAI (Twitter/X) via The Verge

OpenAI removes 'io' branding mentions over trademark lawsuit - 9to5Mac

If you recently looked up but couldn't find OpenAI's announcement video about its flashy partnership with Jony Ive, you are not alone. OpenAI has quietly pulled down the original blog post and the accompanying nine-minute video, just weeks after touting the $6.5 billionsc deal as a landmark step toward building new AI hardware. Here's what happened. According to a statement given to The Verge, OpenAI says the content was taken offline following a court order tied to a "trademark lawsuit from Iyo, the hearing device startup spun out of Google's moonshot factory." Here is OpenAI's full statement to The Verge: "This page is temporarily down due to a court order following a trademark complaint from iyO about our use of the name 'io.' We don't agree with the complaint and are reviewing our options." Ive's camp has already signaled it won't back down either. In a statement to Bloomberg, a spokesperson for Ive said: "This is an utterly baseless complaint and we'll fight it vigorously" Despite the disappearing web pages, both OpenAI and Ive say the partnership itself remains on track. The original deal, announced earlier this month, involves OpenAI acquiring Ive's hardware startup, called IO Products and merging the team with OpenAI's own research and engineering groups in San Francisco. At the time, OpenAI framed the move as its biggest step toward designing consumer-facing AI devices with a more human-centered approach. Whether the final product will ship under the "io" name is now an open question.

OpenAI vs. ioY: Key takeaways from the new legal filings - 9to5Mac

Yesterday evening, TechCrunch reported on a series of new legal filings made by OpenAI in the ioY trademark lawsuit that led to the scrubbing of the 'io' brand on OpenAI's website. The documents, filed by OpenAI's CEO Sam Altman as well as ex-Apple employees Evans Hankey, Tang Tan, and Marwan Rammah (now all at io Products), reveal as much about the company's ambitions as they do about what it hopes to keep under wraps. Here are a few key takeaways. In 2022, iyO CEO Jason Rugolo tried to hire Evans Hankey, while she was still at Apple as VP of Industrial Design. "In 2022, while I was still employed by Apple, my good friend and former colleague, Steve Zadesky suggested that I speak with Jason Rugolo. (...) During the call, Mr. Rugolo said he was looking for a head of design at his company. At the time, I did not know the name of his company, and he did not tell me. He told me that the company was working on augmented audio technology for the ear with a voice input. He did not mention anything having to do with AI to me. I told him that I was not personally interested (...)" Although it's commonly believed that Ive's former lieutenants left Apple to join his firm, LoveFrom, that wasn't the case for Hankey. Per her own account, nearly a year passed before she came on board full-time: My last day of work at Apple was in April of 2023. I was ready for a break, and at the time, I did not have plans for what I would do next. But soon after that, while on a shared family vacation with Jony Ive and his family, I began talking to his son Charlie, and eventually Jony, about the exciting developments in AI. Over that summer, Jony and I continued to discuss AI developments, and he invited me to join a new venture he was working on. I was not ready to commit to a full-time position, but I initially agreed to join around October as an advisor to work with Jony and his design collective at LoveFrom. At that time, I understood that OpenAI had the right to use the io.com domain name. By June 2024, I was working at io full time. In its motion to dismiss the lawsuit, OpenAI repeatedly claims that ioY CEO pursued Sam Altman and other executives at OpenAI and io Products, with requests ranging from product demos, to partnerships, to outright investment and acquisition proposals. The document draws a timeline of delayed rollouts and malfunctioning demos, as it insinuates that ioY's trademark lawsuit threats only came up when it became clear that OpenAI was not interested in working with them in any capacity. "On March 4, 2025, Rugolo emailed Sam Altman, CEO of OpenAI, seeking $10 million in funding. Rugolo stated that he would "love to show you what we've built and convince you we are right about the future of human-computer interface." Altman responded the same day: "thanks but im working on something competitive so will respectfully pass!" and told Rugolo that what he was working on was "called io." Rugolo was undeterred. He responded "ruh roh. / want to work together?" And "However, Zadesky, (Apple's ex-Vice President of Product Design for iPhone and Apple Watch, Tang) Tan's former mentor from Apple, reached out to Tan and encouraged him to take the meeting. As a courtesy to Zadesky, Tan agreed. When he agreed to the meeting with iyO, Tan made clear that he would not sign any NDA with iyO because he did not want io to receive any iyO confidential information. Rugolo agreed to proceed without one." And "Tan was the last person to do the demonstration, so when it was over, he was the only employee left in the room. Rugolo used that opportunity to explain that he was fundraising for iyO. When Tan did not express interest, Rugolo pivoted, saying he would sell the entire iyO company for $200 million. When Tan again demurred, Rugolo asked Tan to review iyO's IP portfolio to see if io would be interested in purchasing it. Tan responded that he would need to speak to attorneys before undertaking any such review due to IP concerns." And "Four days after the meeting, Rugolo sent an email saying he would 'love to find a way to partner up,' suggesting a joint 'developer kit.'" Although io was announced only recently, Jony Ive and Sam Altman had been laying the groundwork for the initiative since the summer of 2023, when they acquired the io.com domain. In his statement to the court, Sam Altman said: "In the summer of 2023, Jony Ive and I decided on the name "io" for a collaboration between our companies to develop a family of devices that would allow people to use AI in new ways. We decided on this name because it is a common phrase for "input/output," and our intent with this collaboration was, and is, to create products that go beyond traditional products and interfaces. We want to create new ways for people to input their requests and new ways for them to receive helpful outputs, powered by AI. As part of our decision to use the "io" name, we acquired the io.com domain name in August 2023." io Products was studying in-ear headphones as recently as March. Here's Marwan Rammah, an ex-Apple employee and current Staff Engineer at io Products: "On March 17, 2025, I placed an order for VAD PRO headphones from iyO. I used my work email address, the same email address I use to communicate with my colleagues, to place the order, and I had the product shipped to our office address. The VAD PRO headphones were one of at least 30 different headphones io purchased around that time because we wanted to understand the current state of audio products." And here is io Product's carefully phrased statement on in-ear devices to the court: "io is at least a year away from offering any goods or services, and the first product it intends to offer is not an in-ear device" That statement also echoes Evans Hankey's careful phrasing in her declaration to the court: "io has no current plans to offer a custom-molded earpiece product." Hankey's statement is part of io Products' broader argument that the lawsuit should be dismissed, as their products are not in the same strict category as ioY's custom-molded earpieces. They also make the point to mention a previous court case, which determined that: "The mere fact that two products or services fall within the same general field ... does not mean that the two products or services are sufficiently similar to create a likelihood of confusion." Finally, Tang Tan's declaration also carefully frames only their immediate plans:

Court documents detail OpenAI's AI hardware project with Jony Ive - 9to5Mac

As OpenAI fights a trademark lawsuit over its now-scrubbed "io" brand, new public court filings are giving us the most detailed glimpse yet into what Sam Altman and Jony Ive's hardware team have been up to behind the scenes. As reported by The Verge and Bloomberg yesterday, the legal battle stems from a case brought by iyO, a Google-backed startup that argues the "io" branding from OpenAI's newly formed io Products, Inc., is too close for comfort. But the story doesn't end there. As reported by TechCrunch, a set of newly-made public documents show that OpenAI representatives, including Tang Tan, an ex-Apple executive who is now Chief Hardware Officer of io Procucts, met with iyO CEO, Jason Rugolo to "learn more about iyO's in-ear product." Internal emails suggest, however, downplay the importance of the meetings as they show the team left unimpressed after multiple demo failures. Interestingly, the new documents claim OpenAI has spent months studying in-ear devices and has thoroughly investigated the headphone market and audio devices in general. Still, per Ten's declaration to the court, their future AI product "is not an in-ear device, nor a wearable device." He also added that the design, which Sam Altman previously described as something that "fits in your pocket or sits on your desk," isn't finalized and that the product is at least a year away from being announced or sold. As for Altman, he also sent a declaration to the court, stating that "Our intent with this collaboration was, and is, to create products that go beyond traditional products and interfaces". While legal statements claim that io's product is "not an in-ear device, nor a wearable device," emails from iyO reveal that OpenAI and io were particularly curious about one specific part of iyO's tech: its 3D ear-scanning process. To customize each earpiece, iyO sends technicians to scan users' ears with precision equipment, a workflow that caught the attention of former Apple engineer Marwan Rammah, now part of io's team. In an email to Tan, Rammah floated the idea of buying a database of ear scans from iyO's vendor, calling it a "helpful starting point on ergonomics." For its part, iyO spent months trying to turn that interest into something bigger. Court documents show iyO's CEO repeatedly pitched OpenAI on investing, partnering, or even acquiring iyO outright, for as much as $200 million. Tan ultimately declined. Finally, in yet another statement to the court, Evans Hankey, another former Apple executive now leading design efforts at io, made one thing clear: "io has no current plans to offer a custom-molded earpiece product." What do you think OpenAI and Jony Ive's team are working on? Let is know in the comments.

Jony Ive's OpenAI Device Won't Be Wearable, Court Filings Reveal

More details have leaked about former Apple design chief Jony Ive's secretive collab with OpenAI to create a new AI consumer product. The gadget - pitched as a "third core device" that would sit in your pocket, or on your desk alongside a MacBook Pro and iPhone - apparently won't be an in-ear device or a wearable. How do we know? Earlier this week, OpenAI was forced to remove from its website mentions of io (the hardware startup it acquired, co-founded by Ive) to comply with a trademark lawsuit by a Google-backed company called iyO, which is developing custom-molded earpieces that connect to other devices. To back up its claim that OpenAI wilfully infringed on its trademark, iyO submitted court filings that include emails showing that executives from io and OpenAI knew about its in-ear device - dubbed "the world's first audio computer" - and even requested a demo of iyO's product. However, io co-founder and former Apple executive Tang Tan submitted court filings this month responding to the allegation. In the June 12 court declaration, Tan concedes that the company "surveyed the existing commercial offerings" and that "as part of these early efforts, io purchased a wide range of earbuds, hearing aids, and at least 30 different headphone sets from a variety of different companies." However, Tan says the first device it plans to launch "is not an in-ear device, nor a wearable device." The filings also say the device is "at least a year away from being offered for sale." The new tidbit goes against a recent prediction by industry analyst Ming-Chi Kuo, who said that users will be able to wear the device around their necks, "like a necklace." Even before the court filings, Kuo's claim seemed speculative at best, given that Ive apparently isn't keen on making something you'd wear on the body. Previous leaks have revealed that the gadget will be pocket-sized, contextually aware of your surroundings and life, and completely screen-free. Altman apparently told OpenAI staff it's "the coolest piece of technology that the world will have ever seen" after testing Ive's prototype at home. OpenAI acquired Ive's startup io for $6.5 billion, with Altman suggesting the deal could add $1 trillion in value to the company. The goal is to ship the device by late 2026, and OpenAI has ambitious plans to reach 100 million units "faster than any company has ever shipped 100 million of something new before." If you've been eagerly awaiting more concrete details about mysterious AI device, the new info is likely to disappoint. Other than that, it's hard to know what to expect, especially given it's been several years since Ive oversaw the design or launch of a consumer electronics product. All we can hope is that it doesn't have the durability of a butterfly keyboard.

OpenAI takes down mentions of Jony Ive's io amid trademark row

ChatGPT developer forced to act after receiving legal complaint from earbud maker iyO OpenAI has taken down online content related to its recent deal with Sir Jony Ive's hardware startup, io, after a trademark complaint. The artificial intelligence company has removed promotional materials including a video where Ive - the former Apple designer behind the iPhone - and OpenAI's chief executive, Sam Altman, discuss the $6.4bn (£4.8bn) transaction. However, the nine-minute film can still be viewed on YouTube. OpenAI, the developer of ChatGPT, was forced to act after receiving a legal complaint from iyO, a startup that makes artificial intelligence-backed earbuds. OpenAI said it had taken down a page on its website announcing the company's acquisition of io, which will involve Ive's company taking on creative and design leadership across the combined businesses. The dispute does not impact the deal itself, OpenAI added. "This page is temporarily down due to a court order following a trademark complaint from iyO about our use of the name 'io'. We don't agree with the complaint and are reviewing our options," said an OpenAI spokesperson. Ive left Apple in 2019 after a 27-year career as one of the technology company's foremost product designers. The io deal video mapped out Ive and Altman's far-reaching ambitions for the transaction, which was announced last month. Ive, who was born in the UK and whose design credits include the first iPod, iPhone, MacBook Air, Apple Watch and AirPods, said: "I have a growing sense that everything I have learned over the last 30 years has led me to this place, to this moment." Altman said in the video that he has been trying out a prototype Ive device and says: "I think it is the coolest piece of technology that the world will have ever seen." The fruits of the Ive-OpenAI partnership are not expected to emerge until next year. According to reports, the AI-enabled device will be "unobtrusive" and capable of being fully aware of a user's surroundings and life. It will sit on a user's desk and complement a MacBook Pro and an iPhone, according to the Wall Street Journal. Although Ive has expressed regret about the "unintentional" negative impacts of smartphone use, Altman has said the new venture does not plan to eliminate the iPhone. "In the same way that the smartphone didn't make the laptop go away, I don't think our first thing is going to make the smartphone go away. It is a totally new kind of thing," Altman told Bloomberg in May.

OpenAI and Jony Ive deal still on as ChatGPT owner scrubs io branding

All mentions of OpenAI's partnership with Jony Ive's startup io have been scrubbed from the company's site, following a trademark dispute. On Sunday afternoon, users on X noticed that the page on the OpenAI website announcing the company's $6.5 billion acquisition of io was taken down. But following brief speculation that the partnership had crumbled, OpenAI confirmed to The Verge that the deal is still on. Instead, it's related to a trademark dispute involving an AI earbud company called "iyO." "This page is temporarily down due to a court order following a trademark complaint from iyO about our use of the name 'io,'" the webpage now says. "We don't agree with the complaint and are reviewing our options." The promotional video is still up on X. According to an earlier report from Bloomberg Law last week, iyO, which began as a project within Google's Moonshot Factory incubator, filed a trademark lawsuit against OpenAI. According to Bloomberg's Mark Gurman, the judge presiding over the lawsuit issued a restraining order Jun. 20 against OpenAI, forcing the company to remove all materials with the "io" name. "The Jony Ive and OpenAI deal is on track and has NOT dissolved or anything of the sort, I'm told," said Gurman on X. This Tweet is currently unavailable. It might be loading or has been removed. The OpenAI and io collaboration was announced in late May, with a promotional video and blog post sharing plans to develop a screenless AI companion. Ive, the iconic designer behind the iPhone and other emblematic Apple designs, is leading a team within OpenAI to develop a wearable device that has an awareness of users' surroundings through voice and image support. iyO makes an AI-powered companion in the form of earbuds. The company is currently accepting pre-orders for its iyO One device, and has argued in its lawsuit that OpenAI's venture has already created confusion. "Momentum 'came to a screeching halt' after io news," Bloomberg Law reported.

OpenAI pulls Jony Ive promo video over trademark dispute

This video interview between Jony Ive and Sam Altman has now been removed -- Image Credit: OpenAI A nine-minute video with Jony Ive and Sam Altman discussing their recently acquired AI startup has been withdrawn because of a challenge to their "io" name. While the existence of Ive and Altman's AI startup was reported as long ago as April 2024, it wasn't until a year later that its name was known. Even then, inApril 2025, it was initially reported that it was called "io Projects." By the time that the company was bought by Altman's OpenAi for $6.5 billion in May 2025, it had been officially announced under the name "io." Now as first spotted by TechCrunch, that name is proving to be a problem. A firm called iyO has taken to court to object over the name io and claim that it is, or will, create consumer confusion over its own AI products. The iyO firm comes from the research and development Alphabet X project, and is an AI device that relies solely on speech. While the case is still to be decided, Judge Trina L. Thompson held a discussion on or about June 18, 2025, concerning the issue. Judge Thompson has seemingly now granted iyO's temporary restraining order. No details have been released, but OpenAI has removed all mention of io in its promotional materials, including the nine-minute video interview between Ive and Altman. "This page is temporarily down due to a court order following a trademark complaint from iyo about our use of the name 'io,'" says an announcement on OpenAI's site where it previously hosted the video. "We don't agree with the complaint and are reviewing our options." Almost nothing is known about Ive and Altman's planned device, other than that it will be an AI-based one. In a TED talk in April 2024, iyO CEO Jason Rugolo revealed -- and used -- his firm's first device, the iyO One. Reminiscent of the failed Humane AI Pin, but intended to be worn in the ear, the demonstrated model is like a very large and conspicuous earbud. Rugolo says that iyO One represents a "new kind of natural language computing" that relies on "genuine, engaging conversation." The iyO One is available for pre-order for $99 and is due to ship in August 2025.

OpenAI scrubs mention of Jony Ive partnership after judge's ruling over trademark dispute

A budding partnership between OpenAI CEO Sam Altman and legendary iPhone designer Jony Ive to develop a new artificial intelligence hardware product has hit a legal snag after a federal judge ruled they must temporarily stop marketing the new venture. OpenAI last month announced it was buying io Products, a product and engineering company co-founded by Ive, in a deal valued at nearly $6.5 billion. But it quickly faced a trademark complaint from a startup with a similarly sounding name, IYO, which is also developing AI hardware that it had pitched to Altman's personal investment firm and Ive's design firm in 2022. U.S. District Judge Trina Thompson ruled late Friday that IYO has a strong enough trademark infringement case to proceed to a hearing in October. Until then, she ordered Altman, Ive and OpenAI to refrain from "using the IYO mark, and any mark confusingly similar thereto, including the IO mark in connection with the marketing or sale of related products." OpenAI responded by scrubbing its website of mentions of the new venture, including a web page of the May 21 announcement. In its place, the company had a message Monday that said the page "is temporarily down due to a court order" and added, "We don't agree with the complaint and are reviewing our options." IYO CEO Jason Rugolo applauded the ruling Monday in a written statement that said the startup will aggressively protect its brand and tech investments. "IYO will not roll over and let Sam and Jony trample on our rights, no matter how rich and famous they are," Rugolo said. © 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

Altman and Ive's internet-breaking 'io' project just vanished, and its name is to blame

Not too long ago, legendary ex-Apple designer Jony Ive and OpenAI's CEO Sam Altman broke the internet by announcing their mysterious new collaboration. Well, try searching for it now, and you'll mostly hit a dead end. Interestingly, this isn't because the deal fell apart, or that either one of them woke up and decided to bail. Instead, it's because a federal judge told them to pull the plug... for now, at least. As reported by The Verge, OpenAI quietly scrubbed all mentions of Jony Ive's startup, the AI giant it recently acquired for $6.5 billion, called io. Any official mention of the project, including the announcement blog post and the nine-minute video where Jony Ive and Sam Altman confirmed they're developing a new AI device, is no longer available. When you search "OpenAI io," one of the top results is still "Watch the film | Sam and Jony introduce io," but clicking on it no longer displays the content that was once there. Instead, it now reads: "This page is temporarily down due to a court order following a trademark complaint from iyO about our use of the name 'io.' We don't agree with the complaint and are reviewing our options." Interestingly, Sam Altman's original post on X (formerly Twitter) announcing the project is still up, along with the nine-minute video. At the time of writing, it currently has over 5.5 million views. Could Altman have simply forgotten to take it down, or was the post left up intentionally? OpenAI's spokesperson, Kayla Wood, shared the exact same notice as above with The Verge when asked for comment. OpenAI also confirmed to The Verge that the deal is still happening. "This is an utterly baseless complaint and we'll fight it vigorously," said a spokesperson for Jony Ive in a statement to Bloomberg. Essentially, what's happening right now is that a U.S. federal judge has issued a temporary injunction preventing OpenAI, Jony Ive, and Sam Altman from using the name "io" or anything similar. This is due to a trademark lawsuit initiated by iyO, a startup that develops AI-powered earbuds. What's ironic here is that iyO also works on AI-related tech and is, in some ways, chasing the same mission as OpenAI. Though iyO is now a standalone startup, it emerged from Google's secretive X lab, which is also known as the Moonshot Factory. Though many were quick to believe that the project had been quietly shelved or that something had gone terribly wrong behind the scenes, the court order only affects the use of the name "io." Best case scenario? They win the trademark dispute and keep the "io" name as planned initially. Worst-case scenario? If the court rules against Altman and Ive, they'll be forced to ditch the "io" branding completely and rebrand the device ahead of its official launch. So all this really is right now is a branding roadblock -- not a development halt. Altman previously hinted that the device might even ship within a year, so it seems like it's a race of lawyers and engineers now, while the rest of us quietly spectate.

OpenAI Removes All Jony Ive Materials From Its Website

It's only been a month since OpenAI announced its secretive new project with iPhone designer Jony Ive -- and already, the partnership is in legal hot water. As the Associated Press reports, all mentions of Ive and his AI device brand, io, have been removed from OpenAI's website and marketing materials after a judge ruled in favor of Iyo, another AI wearable company that has sued the pair for allegedly stealing its product concepts and trademarked name. Last month, Ive and Altman made a splashy announcement about their partnership -- replete with a head-scratchingly intimate black-and-white photo of the two -- that involved OpenAI purchasing io Products for an untold sum of money. As the pair claimed in an interview with Bloomberg, their secretive new venture -- which will apparently involve the creation of screenless AI devices with an unknown form factor that see and hear everything you do -- is slated to be worth about $6.5 billion. Amidst Altman and Ive's media blitz, though, a separate company called Iyo -- which sells what it refers to as "the world's first audio computer" that operates through AI voice activation -- sued Altman, Ive, io, and OpenAI for essentially jacking its idea. According to Iyo's suit, which was filed in a California district court and also includes that weird photo of Altman and Ive, marketing for io has "caused significant confusion in the marketplace, such that the market is presently confused as to who owns rights to the [trade]mark." The company also alleges that OpenAI has been aware of its earbud-worn "audio computer" since 2022, and that Iyo not only had meetings with Altman and Ives' representatives, but was also asked outright to "share with them its intellectual property" just before announcing a product that was "eerily similar" to the smaller company's. As the AP notes, judge Trina Thompson, the jurist presiding over the suit, decided that Iyo had a strong enough trademark infringement case to go to a full hearing in October -- and that Ive and Altman should halt their marketing of io until then. In a statement to Bloomberg, a spokesperson for Ive said the suit was "utterly baseless" and pledged to "fight it vigorously." Altman, meanwhile, said in a post on X that Iyo CEO Jason Rugolo was "hoping we would invest in or acquire his company... and was quite persistent in his efforts." "Now he is suing [O]penai over the name," Altman tweeted. "This is silly, disappointing and wrong." At this early stage in the case, it's hard to say which party's spin is correct -- but we have a sneaking suspicion that a lot of interesting details could come out in trial discovery later this year. If they don't pay a bundle of cash to make the whole thing go away, that is.

Sam Altman fires back at 'silly' lawsuit from what he claims is a desperate CEO that has been persistent in seeking investment from OpenAI

Sam Altman this week brushed off a lawsuit going after "io," OpenAI's team-up with famed former Apple designer Jony Ive, but a judge's recent decision could make the issue a bigger headache than previously imagined for the AI giant. The trademark infringement suit, filed earlier this month by a startup called iyO, claimed Altman, Ive, and OpenAI had known about the startup and its tech since at least 2022 and had conversations with the company about a possible investment as late as spring 2025. Still, OpenAI went ahead and used the homophone name "io" in a splashy May announcement. iyO claimed it was harmed by OpenAI's announcement of io, a startup cofounded by Ive that OpenAI purchased for about $6.5 billion. The lawsuit claimed OpenAI refused to stop using the io name even after iyO requested it do so, and as a result, investors got spooked about the name confusion and funding interest in the startup dried up. A judge last week granted iyO a temporary restraining order barring OpenAI from using its io brand at least until a preliminary injunction hearing in October. Following the order, the AI company removed any mention of io from its promotional materials and website. OpenAI won't be able to use the io brand through the remainder of the trial, which is set to start in January 2028, if it fails to change the judge's mind in October, and at least one trademark lawyer thinks the odds are against it. Trademark and intellectual property attorney Josh Gerben said the temporary restraining order the judge granted to iyO is not easily obtained, and is typically reserved for extreme circumstances where harm is likely. Rather than fight the court's decision at the hearing in October, and then at trial, it may be easier for OpenAI to rebrand, said Gerben. "Legally, IYO's case appears to be strong, especially given the phonetic similarity between 'IYO' and 'IO' and the reported instances of actual confusion," he told Fortune. "If the case were to go to trial and IYO could provide that its fundraising efforts went completely dry, along with other evidence showing that consumers were being confused by OpenAI's use of 'IO,' it would likely win the case." Despite pulling its io branding, Altman was dismissive of the lawsuit, calling it "silly." The OpenAI CEO took a shot at iyO in several posts on X, claiming its CEO Jason Rugulo had been "quite persistent in his efforts" to get OpenAI to either buy or invest in his company. "i wish jason and his team the best building great products. the world certainly needs more of that and less lawsuits," Altman wrote in a follow-up post. A spokesperson for OpenAI did not immediately respond to Fortune's request for comment. Still, iyO's general counsel said in a statement to Fortune that iyO felt confident following the judge's decision to issue the temporary restraining order last week. "We're not surprised by Mr. Altman's dismissive tone -- but federal judges don't issue restraining orders based on 'silly' claims. The court found that iyO is likely to succeed in showing infringement, and that's what matters. We'll continue to protect the company's brand and rights -- no matter how big the opponent."

OpenAI pauses Jony Ive partnership marketing in trademark dispute

OpenAI has to stop advertising a partnership project with an iPhone designer due to a trademark dispute. But the case hints at what we could expect from the Jony Ive partnership. A US federal judge asked OpenAI to stop marketing its upcoming partnership with an iPhone designer due to a trademark dispute. OpenAI last month announced it was buying io Products, a product and engineering company co-founded by Jony Ive, the former senior vice president of industrial design and chief design officer at Apple,** in a deal valued at nearly $6.5 billion (€5.6 billion). A competing firm called IYO that pitched an AI hardware to OpenAI CEO Sam Altman's personal firm and Ive's design firm launched a trademark complaint against the deal. US District Judge Trina Thompson ruled late Friday that IYO, a Google-backed hardware start-up,** has a strong enough trademark infringement case to proceed to a hearing in October. Until then, she ordered Altman, Ive and OpenAI to refrain from "using the IYO mark, and any mark confusingly similar thereto, including the IO mark in connection with the marketing or sale of related products." OpenAI responded by scrubbing its website of mentions of the new venture, saying instead that the page "is temporarily down due to a court order. "We don't agree with the complaint and are reviewing our options," the company added. IYO CEO Jason Rugolo applauded the ruling Monday in a written statement to the Associated Press that said the start-up will aggressively protect its brand and tech investments. "IYO will not roll over and let [Altman] and [Ive] trample on our rights, no matter how rich and famous they are," Rugolo said. Altman said in a June 12 court filing that he and Ive decided on the io name for their collaboration "because it is a common phrase for 'input/output'" and that their intent with the collaboration "was, and is, to create products that go beyond traditional products and interfaces". He added that they received the io.com domain name in August 2023. A file sent to the court from the OpenAI team alleges that Rugolo approached OpenAI several times for either funding, propositions to sell the company for $200 million or to ask for ways the companies could work together. After io was launched on May 21, the court filing says Rugolo contacted OpenAI's Tang Tan, io's chief hardware officer, congratulating them on the launch. When Tan said he did not want to pursue a partnership, Rugolo then raised an issue with the name for the first time. "I was surprised to receive this email," Tan wrote in a case declaration. "Mr. Rugolo had never mentioned any issues with the io name in any of our prior communications over the past several weeks. "It appeared to me that Mr. Rugolo was raising the issue of our name in bad faith to try to force us to do a deal with his company," he said. In a filing to the court, Altman and Ive's lawyers say that their io project is not working on an in-ear or wearable AI device like IYO is. "io is at least a year away from offering any goods or services, and the first product it intends to offer is not an in-ear device like the one Plaintiff is offering for "presale" (but which is also still at least months away from its claimed release date)," the filing says. Altman previously told OpenAI employees that the io prototype would be able to fit in a pocket or sit on a desk. The device would eventually be a third one that users could have in addition to their smartphone and laptop. The court filing from OpenAI also says io developed several prototypes, like objects that were "desktop-based and mobile, wireless and wired, wearable and portable". As part of this effort, io bought a "wide range" of earbuds, hearing aids and "at least 30" different headphone sets from companies, including IYO. The order for IYO's One earbuds asked for a downpayment of $69 and would be shipped in the winter of 2024, but was never fulfilled by the company, the case added.

OpenAI Exposed: iyO vs io | AIM

iyO claims that Altman and his team reviewed detailed information about the IYO ONE and declined to invest but continued to follow the company's progress. The world wasn't ready for what netizens have called the "most dramatic tech lawsuit of the year". Voice computing startup iyO has filed a lawsuit against OpenAI, io, Sam Altman, and Jony Ive, alleging trademark infringement, unfair competition, and misappropriation of confidential information. OpenAI's io announcement page has been taken down and now shows a message that reads, "This page is temporarily down due to a court order following a trademark complaint from iyO about our use of the name 'io'. We don't agree with the complaint and are reviewing our options." The complaint, filed on June 9 in the Northern District of California, centres on the launch of OpenAI's new hardware venture, io, which iyO claims is "confusingly similar" to its brand and product. Tang Yew Tan, the former Apple executive working on OpenAI's experimental hardware project, io, has submitted a court declaration refuting allegations made by voice computing startup iyO. According to new court documents, OpenAI stated that the io announcement on May 21 was made via a blog post and video, but did not promote any specific product. "Its design is not yet finalised, but it is not an in-ear device, nor a wearable device. io has not sold any products, offered any products for sale or distribution, distributed any products, or advertised any goods or services. It has no plans to do so for at least a year." On May 21, OpenAI announced its $6.5 billion acquisition of a new venture co-founded by Ive, named io. The announcement described plans to build a new class of personal computing devices focused on voice and AI. According to the iyO, this caused immediate market confusion due to the phonetic similarity between 'io' and 'iyO,' particularly as both companies are developing similar products. OpenAI CEO Sam Altman, in a court filing, claimed he had no prior knowledge of iyO or any AI-related work by its founder Jason Rugolo when the name 'io' was chosen in 2023. "I was not aware that Jason Rugolo was doing anything related to AI, nor do I remember ever having seen the company name 'iyO'," Altman stated, adding that he was only made aware of its existence in 2025. "At no point in time did I ever intend to trade on the 'iyO' name." According to Altman, Rugolo reached out unexpectedly in March, seeking $10 million in funding. Altman said he took the call as a courtesy, owing to Rugolo's persistence, and forwarded the meeting request to the internal and external io teams to assess any potential collaboration. He clarified that he never promised an acquisition nor threatened a lawsuit. He suggested Rugolo might have "misunderstood" a mention of OpenAI's ownership of the io.com domain. According to the court filings, iyO was formed in 2021 as a spinout from Google X (Google's Moonshot Project) after an investment of $25 million in research and development. Since then, the company has raised an additional $37 million and developed the iyO ONE, an ear-worn, screen-free audio computer. The product is built for voice-first interaction and bone conduction audio delivery, operating entirely without a traditional screen. iyO ONE features 16 microphones to support natural language interaction. In a TED Talk last year, Rugolo introduced an 'audio computer' -- a new device that moves users away from screen-based, attention-heavy interactions and towards natural, voice-driven computing. "The truth is that we could all benefit from a little less screen time," Rugolo said. "We need an entirely new kind of computer. One that speaks our language instead of forcing us to speak theirs." The lawsuit alleges that OpenAI and Ive's design firm LoveFrom had engaged with iyO as early as 2022. These interactions began with investment interest from Apollo Projects, a fund led by Altman. IyO claims that Altman and his team reviewed detailed information about the IYO ONE and declined to invest but continued to follow the company's progress. Tan confirmed that on April 16, Peter Welinder, VP of products at OpenAI, introduced him to Rugolo via email. Rugolo wanted to demonstrate some of iyO's audio technology. On May 1, Rugolo and an iyO engineer met with Tan and other io employees to demonstrate the iyO ONE. The demo included voice search, music playback, and live translation. However, Tan said it was largely unsuccessful, with translation features failing repeatedly. According to Tan, Rugolo appeared to be fundraising and even offered to sell the entire company. "When I did not express interest, Rugolo pivoted, telling me that he would sell the entire iyO company for $200 million, which I understood to be roughly the amount iyO had raised to date." Tan revealed declining again and becoming concerned about exposure to unsolicited IP. "Rugolo seemed desperate for cash...It has long been my practice since my time at Apple to avoid being 'contaminated' by another company's intellectual property." Tan said that in May 2024, he placed a preorder for iyO's ONE earbuds with WiFi and LTE connectivity via the company's website. The total listed price was $1,199, with a $69 down payment. At the time, iyO promised a shipping window of Winter 2024. However, on January 13 the following year, he received an email from iyO stating that the WiFi version would be delayed until August, and that the LTE version was delayed further. As of the date of the declaration, the product was still not delivered. On the other hand, iyO said that in Spring 2025, it had more meetings with OpenAI and LoveFrom to discuss a possible investment. During those meetings, iyO shared its vision, technology, and some still-in-development ideas. Seven people from OpenAI and LoveFrom also tried out demo versions of the iyO ONE device. Even if OpenAI and Ive didn't copy iyO on purpose, the similarities are hard to ignore. In today's tech world, the line between inspiration and imitation gets thinner every day, and who gets credit often depends on who has more power, not better ideas.

Trademark dispute forces OpenAI to take down io posts

OpenAI recently secured a partnership with io, a hardware startup co-founded by Jony Ive, with a strategic objective to develop specialized artificial intelligence hardware; however, all public references to io have been removed from OpenAI's digital platforms. The removal of content occurred shortly after OpenAI announced its approximately $6.5 billion acquisition of the startup. This acquisition was intended to integrate io's capabilities into OpenAI's broader initiative to produce bespoke AI hardware solutions. Previously, an announcement blog post and a nine-minute video featuring Jony Ive and OpenAI CEO Sam Altman were accessible to the public, detailing the collaboration. The blog post, co-authored by Ive and Altman, stated, "The io team, focused on developing products that inspire, empower and enable, will now merge with OpenAI to work more intimately with the research, engineering and product teams in San Francisco." These materials are no longer available across OpenAI's official channels. OpenAI has confirmed to The Verge that the acquisition agreement remains active despite the removal of the aforementioned content. The reason for the content's removal is a trademark lawsuit initiated by Iyo, a company specializing in hearing devices. Iyo is a startup that originated from Google's experimental development division, known as its moonshot factory. Kayla Wood, a spokesperson for OpenAI, issued a statement regarding the situation, clarifying the temporary unavailability of the content. Wood stated, "This page is temporarily down due to a court order following a trademark complaint from iyO about our use of the name 'io.' We don't agree with the complaint and are reviewing our options." This indicates OpenAI's stance on the legal challenge and its consideration of potential responses to the trademark dispute.

OpenAI scrubs mention of Jony Ive partnership after judge's ruling over trademark dispute

SAN FRANCISCO (AP) -- A budding partnership between OpenAI CEO Sam Altman and legendary iPhone designer Jony Ive to develop a new artificial intelligence hardware product has hit a legal snag after a federal judge ruled they must temporarily stop marketing the new venture. OpenAI last month announced it was buying io Products, a product and engineering company co-founded by Ive, in a deal valued at nearly $6.5 billion. But it quickly faced a trademark complaint from a startup with a similarly sounding name, IYO, which is also developing AI hardware that it had pitched to Altman's personal investment firm and Ive's design firm in 2022. U.S. District Judge Trina Thompson ruled late Friday that IYO has a strong enough trademark infringement case to proceed to a hearing in October. Until then, she ordered Altman, Ive and OpenAI to refrain from "using the IYO mark, and any mark confusingly similar thereto, including the IO mark in connection with the marketing or sale of related products." OpenAI responded by scrubbing its website of mentions of the new venture, including a web page of the May 21 announcement. In its place, the company had a message Monday that said the page "is temporarily down due to a court order" and added: "We don't agree with the complaint and are reviewing our options." IYO CEO Jason Rugolo applauded the ruling Monday in a written statement that said the startup will aggressively protect its brand and tech investments. "IYO will not roll over and let Sam and Jony trample on our rights, no matter how rich and famous they are," Rugolo said. -- -- The Associated Press and OpenAI have a licensing and technology agreement that allows OpenAI access to part of AP's text archives.

OpenAI's Partnership With Legendary iPhone Designer Jony Ive Has Already Hit a Snag: 'We Don't Agree With the Complaint'

Former Apple designer Jony Ive, who began at the tech giant in 1992, is famous for his work creating the iPhone and iPad (among other products). Ive left Apple in 2019 to found his own companies, including "io," an AI device startup, which was just purchased for $6.5 billion in an all-stock deal last month by ChatGPT-maker and AI behemoth, OpenAI. Or was it? If you check OpenAI's website or social media, you will no longer find any mention of it. Related: 'The Coolest Piece of Technology the World Has Ever Seen': OpenAI Is Acquiring Former Apple Designer Jony Ive's Startup for $6.5 Billion When the deal was announced, OpenAI CEO Sam Altman and Ive posted a video together announcing the partnership. Altman called one product he interacted with "the coolest piece of technology the world has ever seen," while Ive complimented Altman, calling him "a visionary." Now, the page is blank except for the text: "This page is temporarily down due to a court order following a trademark complaint from iyO about our use of the name 'io.' We don't agree with the complaint and are reviewing our options." Spokespeople for Ive and OpenAI told Bloomberg that the public content was removed because of a recently filed trademark lawsuit by a company called IYO Inc., which also builds AI devices and wants to bar OpenAI from using the "io" name. "This is an utterly baseless complaint and we'll fight it vigorously," a spokesperson for Ive said on Sunday, per Bloomberg. But until then, the launch of the "coolest" tech ever is going to have to wait.

OpenAI and Jony Ive Might Not Be Building an AI-Powered Wearable Device

Tan also said that io will not sell any product for at least another year OpenAI CEO Sam Altman and former Apple designer Jony Ive's hardware company is reportedly not building a wearable device. On Sunday, the company removed its "io" branding from everywhere due to a trademark lawsuit. Now, as per the report, court filings for the suit have revealed that the artificial intelligence (AI) device in the works is not a wearable. However, there is still not a lot of clarity over what it really is. Notably, the court filings have reportedly also revealed that the device will not be launched before 2026. On Sunday, OpenAI removed its announcement video about the partnership with Ive, as well as any web pages and blog posts that mention the word "io," which was the name of the venture. Later, in a post on X (formerly known as Twitter), the official handle of the OpenAI Newsroom issued a statement saying that the announcement page was temporarily taken down due to a trademark complaint from iyO. Interestingly, iyO, an AI startup, was spun out of Google's Moonshot Factory. According to a TechCrunch report, it is developing an AI in-ear device that can connect with other devices, and alleges that io is also working on a similar product. The Google-backed AI startup reportedly also filed documents highlighting that OpenAI and io executives met with iyO's team, and the latter presented a demo of their in-ear device. OpenAI stated that "We don't agree with the complaint and are reviewing our options." Representatives of OpenAI and io have reportedly stated that the companies purchased more than 30 different headphones to explore the recent trends in the market, downplaying the allegation. Now, a new 26-page declaration to the court by Tang Tan, the Co-Founder and Chief Hardware Officer of io Products, and a former Apple executive, reveals that the under-development device is not a pair of earphones or headphones. Tang claimed that the prototype mentioned by Altman in io's launch video "is not an in-ear device, nor a wearable device." He also highlighted that io was not planning to sell any product for at least another year. Notably, Altman has also previously stated during an internal staff call that the AI device being developed is not something that can be worn on the body. He did claim, however, that it would become the "third core device a person would put on their desk after a MacBook Pro and an iPhone."

OpenAI pulls details of Jony Ive partnership amid trademark dispute

What started with the sudden disappearance of a website and a slick promo video over the weekend quickly sparked speculation online. Was the $6.5 billion deal in trouble? Turns out, yes at least legally. Spokespeople for both OpenAI and Ive confirmed that the takedown was due to a trademark dispute. The issue? A company named IYO Inc., which is also working on AI devices, has taken OpenAI to court, asking a judge to block the use of the "IO" name. As Bloomberg first reported, the case is now under review. So while the partnership between OpenAI and Ive isn't officially off the table, the branding and the rollout are on pause. The takedown of all marketing material comes just weeks after OpenAI grabbed headlines in May for acquiring IO Products the hush-hush AI hardware startup co-founded by legendary former Apple designer Jony Ive, the mind behind the iPhone, iMac, and more. The move signaled a major pivot for OpenAI, marking its first big step beyond software and into the world of physical products. When the deal was first announced, OpenAI CEO Sam Altman called it the beginning of "a new family of products," with plans to launch the company's first AI hardware device within a year. Details around the design and features were tightly under wraps, but internally, Altman was bullish reportedly telling employees that OpenAI could move up to 100 million units. A bold bet, and a clear sign of just how much faith he had in the Ive collaboration. Altman didn't hold back on ambition. Internally, he reportedly told staff that acquiring Ive's company could one day add $1 trillion to OpenAI's valuation. "This is the biggest thing we've ever done as a company," he said. At the time of the announcement, Altman and Ive published a now-deleted joint blog post on OpenAI's website, saying: "It became clear that our ambitions to develop, engineer, and manufacture a new family of products demanded an entirely new company." OpenAI had already owned 23% of IO from an earlier collaboration, and paid an additional $5 billion in equity to fully acquire the startup. Public records show IO was incorporated in Delaware in September 2023, and registered in California in April 2024. The hardware division will be led by OpenAI's Peter Welinder, best known for his work in robotics and experimental products. He'll oversee a team drawn from across hardware, software, manufacturing, and research all working closely with OpenAI's core engineering teams in San Francisco. While details remain scarce, this partnership has been years in the making. Altman and Ive reportedly started working together quietly in early 2023. By February 2025, Altman had begun publicly teasing plans for an "AI-first device." What that device could look like is still anyone's guess. Some believe it might follow the path of gadgets like the Humane AI Pin or Rabbit R1. Others speculate it could be smart glasses, in-car AI systems or even robotic interfaces.

OpenAI scrubs mention of Jony Ive partnership after judge's ruling over trademark dispute

A budding partnership between OpenAI CEO Sam Altman and legendary iPhone designer Jony Ive to develop a new artificial intelligence hardware product has hit a legal snag after a federal judge ruled they must temporarily stop marketing the new venture. OpenAI last month announced it was buying io Products, a product and engineering company co-founded by Ive, in a deal valued at nearly $6.5 billion. But it quickly faced a trademark complaint from a startup with a similarly sounding name, IYO, which is also developing AI hardware that it had pitched to Altman's personal investment firm and Ive's design firm in 2022. U.S. District Judge Trina Thompson ruled late Friday that IYO has a strong enough trademark infringement case to proceed to a hearing in October. Until then, she ordered Altman, Ive and OpenAI to refrain from "using the IYO mark, and any mark confusingly similar thereto, including the IO mark in connection with the marketing or sale of related products." OpenAI responded by scrubbing its website of mentions of the new venture, including a web page of the May 21 announcement. In its place, the company had a message Monday that said the page "is temporarily down due to a court order" and added: "We don't agree with the complaint and are reviewing our options." IYO CEO Jason Rugolo applauded the ruling Monday in a written statement that said the startup will aggressively protect its brand and tech investments. "IYO will not roll over and let Sam and Jony trample on our rights, no matter how rich and famous they are," Rugolo said.

OpenAI Scrubs Jony Ive Deal From Website After Trademark Lawsuit Threatens $6.5 Billion IO Products Acquisition - Apple (NASDAQ:AAPL)

Over the weekend, ChatGPT-parent OpenAI pulled all public materials related to its $6.5 billion acquisition of Jony Ive's AI hardware startup, IO Products. What Happened: The takedown followed a trademark lawsuit filed by IYO Inc., a separate AI device company, which claims the "IO" branding infringes on its intellectual property, reported Bloomberg. A spokesperson for OpenAI confirmed the removal to the publication and said it was due to the ongoing legal matter. Ive's representative called the suit "an utterly baseless complaint," adding, "We'll fight it vigorously." Earlier, the publication reported that a judge was weighing a preliminary injunction that could bar OpenAI from using the IO name during the legal proceedings. See Also: McDonald's Just Got Hammered By Weight-Loss Drugs -- Twice Why It's Important: The $6.5 billion acquisition marked OpenAI's most ambitious push into AI hardware. Ive, the former chief design officer at Apple Inc. AAPL, is renowned for designing iconic products like the iPhone and MacBook. Following the acquisition announcement in May, Gene Munster, managing partner at Deepwater Asset Management, said that OpenAI poses the first major competitive threat to Apple in 20 years. According to Benzinga Edge Stock Rankings, Apple's stock shows a negative price trend across short, medium and long-term periods. While the company scores well on quality metrics, its growth and momentum are weak and its valuation appears significantly low. For more information, click here. Read More: US Military Action On Iran? Odds Rise On Crypto Betting Site Polymarket As Trump Demands 'Unconditional Surrender' Photo courtesy: Svet foto / Shutterstock.com AAPLApple Inc$201.292.40%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum23.56Growth32.66Quality76.91Value9.47Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

OpenAI and Jony Ive Look Beyond Wearables for Their First AI Device

As part of the market research, OpenAI and io executives met iyO's leadership to see the demonstration, but were not impressed with the product. OpenAI announced a partnership with veteran iPhone designer Jony Ive last month and acquired Ive's AI hardware startup, io, for $6.5 billion. However, this week, a trademark lawsuit by a Google-backed company named iyO forced OpenAI to temporarily remove all promotional materials related to the 'io' branding. Now, fresh filings in court have revealed key details about what OpenAI and Jony Ive are building. According to TechCrunch, Tang Tan, who is io's chief hardware officer, told the court that OpenAI's future AI device "is not an in-ear device, nor a wearable device." In addition, Tan said that the prototype is under development and the product is still a year away. About a month ago, The Wall Street Journal reported that OpenAI and Jony Ive are developing a pocket-sized AI device that can rest in one's pocket or one's desk, and it would be fully aware of "a user's surroundings and life". It would be a "third core device" that a person would use besides an iPhone and a MacBook Pro. The filing in court confirms that OpenAI is not developing an earbud or a wearable. What is interesting is that these details surfaced in a trademark lawsuit filed by iyO against OpenAI. While iyO doesn't formally accuse OpenAI of stealing trade secrets, the filings suggest that OpenAI and io may have drawn inspiration from private meetings with iyO executives. OpenAI and io executives met iyO's CEO to see the demonstration, as part of the market research. At one point, iyO's CEO pitched to invest or acquire its company for $200 million, but OpenAI turned down the offer as the earpiece failed to work. Overall, OpenAI's position is that it's not developing a custom earpiece product and it doesn't infringe on iyO's trademark.

Sam Altman Slams Trademark Lawsuit Over 'io' As 'Silly' And 'Disappointing' After OpenAI Scrubs Jony Ive Deal From Website Under Judge's Order - Apple (NASDAQ:AAPL)

OpenAI CEO Sam Altman dismissed a trademark lawsuit filed by hardware startup Iyo as "silly" and "disappointing" after a judge ordered ChatGPT-parent to remove references to its collaboration with Apple Inc. AAPL designer Jony Ive. What Happened: Iyo, a startup led by Jason Rugolo, sued OpenAI for trademark infringement earlier this month, claiming the company's use of the name "io" for a new venture with Ive could confuse consumers and damage its brand. The lawsuit follows OpenAI's May announcement that it was teaming up with Ive to launch an AI hardware project reportedly valued at $6.4 billion. A federal judge granted Iyo a temporary restraining order barring OpenAI and its affiliates from using the name "io." OpenAI has since removed the announcement from its website, replacing it with a note that says the page is "temporarily down due to a court order following a trademark complaint." See Also: McDonald's Just Got Hammered By Weight-Loss Drugs -- Twice Altman posted emails from Rugolo on X, suggesting Iyo had previously pushed for OpenAI to invest or buy the company. This lawsuit is "silly, disappointing and wrong," Altman wrote. Rugolo responded on X, stating, "I won't fight you guys in public, and honestly just think it's super bad form for someone like you to be coming after me like this." In another post, he said his communications with Altman date back to 2022, when he first pitched his startup to Apollo Projects. "This particular email from Sam was probably the worst email I've ever received in my professional life," he posted on X. Why It's Important: The $6.5 billion acquisition represented OpenAI's boldest move yet into the AI hardware space. Ive, celebrated for his work on iconic devices like the iPhone and MacBook, is at the center of the effort. After the acquisition was announced, Gene Munster, managing partner at Deepwater Asset Management, remarked that OpenAI now represents the most significant competitive challenge Apple has faced in the past two decades. Benzinga Edge Stock Rankings show an upward trend for Apple's stock in the short term, but a downward trajectory over the medium and long term. While the company scores high on quality metrics, it continues to exhibit weak growth and momentum, and its valuation remains notably low. Click here for more details. Read Next: US Stocks Likely To Open Lower After Moody's Downgrade: 'Bear Market Isn't Fully Recovered Yet, But It Is Close,' Says Expert Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: jamesonwu1972 / Shutterstock.com AAPLApple Inc$201.250.47%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum24.44Growth32.40Quality75.88Value9.30Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

OpenAI removes mentions of Jony Ive's io after trademark suit, says deal still on

io have reportedly been working on a device that moves consumers beyond screens. OpenAI has taken down a video and web page that promoted its acquisition of io, a startup co-founded by former Apple design chief Jony Ive. The content, which focused on the OpenAI CEO Sam Altman and Ive's partnership and vision for future AI devices, has been removed from both OpenAI's website and YouTube. The reason? A trademark complaint. The announcement page now displays a message that reads: "This page is temporarily down due to a court order following a trademark complaint from iyO about our use of the name 'io.' We don't agree with the complaint and are reviewing our options." Also read: Meta wanted to buy OpenAI co-founder's startup but settled for hiring its CEO: Report OpenAI told The Verge that the deal is still on track, but it removed references to the project because of a trademark dispute with iyO. For those who are unaware, iyO is a hearing device startup that originated from Google's moonshot lab. Altman and Ive have reportedly been working on a device that moves consumers beyond screens. While no official product details have been revealed yet, reports suggest the first device could launch in 2026. Ive's design firm is said to lead the creative and design work at OpenAI. Also read: Microsoft eyes more job cuts as it shifts focus to AI and data centers When the deal was first announced, Altman explained the goal is to create a family of AI devices that help people use AI to create "all sorts of wonderful things." Meanwhile, Ive shared that everything he has learned "over the last 30 years has led me to this place and this moment." He said the first product they're working on has "completely captured" his imagination. Though the promotional video is gone for now, both companies appear committed to continuing their work together amid the legal dispute. Also read: Amazon to cut more jobs as AI boosts efficiency, says CEO Andy Jassy

OpenAI and Jony Ive's first AI device might not be wearable, court documents reveal

OpenAI and io purchased over 30 headphone models in the past year to understand what's on the market today. OpenAI and former Apple design chief Jony Ive's startup, io, are working on their first-ever AI device, but it turns out it may not be a wearable at all. Court documents from a trademark dispute with a company called iyO have revealed fresh details about the mysterious product. While many expected the device to be a pair of AI-powered earphones, io's chief hardware officer Tang Tan clarified that the prototype "is not an in-ear device, nor a wearable device." He also revealed the design isn't final yet and that the product won't be ready for sale or advertising for at least another year, reports TechCrunch. Also read: OpenAI removes mentions of Jony Ive's io after trademark suit, says deal still on The court filings also show that OpenAI and io purchased over 30 headphone models in the past year to understand what's on the market today, and had even met with iyO's team to try out their in-ear tech. During a meeting on May 1, OpenAI's VP of Product Peter Welinder and Tang Tan tested iyO's custom-fit earpiece at io's San Francisco office. But the demo didn't go well. The product failed several times, according to emails shared in the case. Tan said he only took the meeting as a courtesy to a former Apple colleague and took steps to avoid learning too much about iyO's intellectual property. Despite multiple offers from iyO's CEO to partner up or even sell his company for $200 million, Tan stated in his declaration that he declined all proposals. Former Apple executive and now io's chief product officer, Evans Hankey, also confirmed that io is not developing a custom-molded earpiece. Also read: Meta wanted to buy OpenAI co-founder's startup but settled for hiring its CEO: Report Meanwhile, OpenAI CEO Sam Altman, said in a declaration to the court, "Our intent with this collaboration was, and is, to create products that go beyond traditional products and interfaces." Whether the first product of OpenAI and Jony Ive will surprise us with a bold new category or redefine an existing one, the tech world will be watching closely.