AI Everything Today

What We Know So Far

• Partnership and Acquisition
  In May 2025, OpenAI announced an all-stock acquisition of io Products, Inc., the hardware startup co-founded by former Apple design chief Jony Ive. The deal was valued at approximately $6.5 billion.

• Trademark Dispute Emerges
  A surprise trademark lawsuit was filed by iyO, a Google-backed startup developing audio-based AI earbuds. They claim the “io” name is confusingly similar, prompting a temporary court order that halted all marketing under that name.

• Marketing Paused but Deal Still On
  OpenAI has removed mentions of “io” from its website and social media. The company is complying with a court order while affirming that the deal remains active.

Prototype Revealed: Not Wearable, Not In‑Ear

• Court Filings Clarify Form Factor
  In recent legal filings, Tang Tan, Chief Hardware Officer of io, confirmed that the prototype is neither a wearable nor an in-ear device. It remains at least a year from commercial release.

• Development Timeline
  The device will not ship before 2026, and its design is still evolving.

• Exploring Multiple Form Factors
  Court documents show that OpenAI/io purchased over 30 headphone sets, demoed earbuds from iyO, and even considered ear-scan ergonomics. Ultimately, they ruled those out for their first product.

What Might It Be, If Not Wearable?

• Pocket or Desk Design
  Sam Altman reportedly described the prototype as something that “fits in your pocket or sits on your desk.” This suggests a compact, standalone device.

• Beyond Touchscreens
  Altman emphasized the vision of building a “third device” that exists beyond smartphones and laptops. It would be context-aware and unobtrusive.

• Speculation Versus Facts
  While many assume it could be smart glasses or a portable AI interface with a camera, nothing is confirmed. What is confirmed is that it is not wearable or in-ear at this stage.

Legal Clash: “io” Versus “iyO”

• iyO’s Claim
  iyO alleges that OpenAI and Jony Ive’s “io” infringes on their trademark. This is especially sensitive because OpenAI had previously evaluated iyO’s custom ear-scanning earbuds and declined to invest.

• Court Response
  U.S. District Judge Trina Thompson found iyO’s case strong enough to merit a hearing in October. A temporary injunction was issued prohibiting OpenAI from using the “io” mark for now.

• OpenAI’s Position
  OpenAI has called the complaint “baseless” and argues that it acquired the io.com domain back in August 2023.

Why This Matters

1. AI Interface Revolution
   This development could mark OpenAI’s first major step into custom AI hardware, redefining how people interact with artificial intelligence without relying on screens.

2. Design Meets Technology
   With Jony Ive and former Apple hardware leads Tang Tan and Evans Hankey on board, product design could become a major differentiator.

3. Legal Precedents for AI Devices
   The trademark case may set important legal precedents in the fast-evolving world of AI hardware and branding.

What to Watch Next

Final Thoughts

The OpenAI and Jony Ive “io” project represents an exciting chapter in AI evolution. It combines high-end product design with next-generation user interfaces. However, its future is uncertain as it faces legal battles and product refinement. Whether the “io” device transforms how we experience AI or not, it certainly highlights the shifting boundaries between design, innovation, and the law.

FAQ

Q: Is this a headset or glasses?
A: Legal documents confirm that the device is not in-ear and not wearable. It is likely something pocket-sized or designed to sit on a desk.

Q: Why is there a name dispute?
A: Because the startup iyO makes AI earbuds and believes “io” is too similar. They also point out that OpenAI reviewed their products and later declined investment.

Q: When will it be available?
A: The current goal is for a launch sometime in 2026, depending on how quickly legal and development issues are resolved.