A trademark lawsuit has pulled the curtain back on OpenAI and Jony Ive’s design company io, revealing new details about a secretive AI hardware device they’ve been quietly developing.
The disclosures come from court documents filed in response to a trademark dispute between OpenAI/io and a startup called iyO—a company backed by Google that builds custom-fitted in-ear devices. The legal battle has now made its way into public view, offering the most detailed glimpse yet into OpenAI’s early-stage product plans.
The Trademark Dispute: Why It Matters
Earlier this month, iyO filed a trademark lawsuit, claiming that OpenAI’s partnership with io infringed on its brand. In response, OpenAI and io pulled promotional content tied to their $6.5 billion acquisition to comply with a court order.
OpenAI says it is actively fighting iyO’s allegations and clarified in filings that its AI device is not based on iyO’s in-ear designs.
What We Know About the AI Device
Despite speculation, the first device from OpenAI and io is not expected to be a pair of headphones—or even a wearable.
According to court documents:
- Tang Tan, io’s Chief Hardware Officer (and former Apple executive), confirmed under oath that:
- The prototype shown in io’s original launch video is not an in-ear or wearable device.
- The hardware is still more than a year away from any public release.
- The final design hasn’t been finalized yet.
- The prototype shown in io’s original launch video is not an in-ear or wearable device.
- Sam Altman, CEO of OpenAI, stated in court that the goal is to go “beyond traditional products and interfaces.”
- Altman described the prototype as a “third device”—something to sit alongside a phone and laptop, possibly on a desk or in a pocket.
- The companies have tested over 30 existing headphone models during research.
Why iyO Got Involved
While OpenAI’s final product may not resemble iyO’s earpieces, the court filings detail several interactions between the companies that brought up concerns.
Meetings & Proposals:
- On May 1, OpenAI’s VP of Product Peter Welinder and io’s Tang Tan met with iyO’s CEO Jason Rugolo.
- They tested iyO’s custom earpiece but were disappointed when it malfunctioned repeatedly during the demo.
- Rugolo proposed:
- Partnering with OpenAI to launch iyO’s earpiece as a developer kit.
- Offering to sell iyO for $200 million.
- Proposing investment opportunities to OpenAI.
- Partnering with OpenAI to launch iyO’s earpiece as a developer kit.
All offers were declined, according to Tan’s court declaration.
Precautions and IP Sensitivity
While OpenAI/io clearly showed interest in in-ear tech, court documents also reveal they took careful steps to avoid infringing on iyO’s intellectual property:
- Tan asked for legal review of iyO’s materials before he viewed them.
- The meeting, he says, was taken out of courtesy to his former Apple mentor.
- io also looked into ergonomic data, considering buying 3D ear scan datasets from The Ear Project, a company iyO worked with.
However, it’s unclear if any actual purchase or deal took place.
What Kind of Device Is io Building?
There’s still no public prototype or product name, but based on court declarations and statements from key executives, the device may be:
- Desktop-based or mobile.
- Wired or wireless.
- Portable, but not wearable.
It may be part of a “family of AI products” that Altman referenced in io’s original launch announcement. Jony Ive himself said the prototype “completely captured” his imagination.
Smart Glasses or Smart Audio?
The broader market is betting on smart glasses as the next big AI hardware trend—with Meta and Google racing ahead. Meanwhile, Apple is working on AI-powered AirPods with built-in cameras.
But despite exploring audio-based devices, io’s filings confirm they’re not working on custom-molded earpieces. Former Apple executive and io co-founder Evans Hankey clarified this in her statement to the court.
Conclusion: A Glimpse, Not a Reveal
Though this lawsuit has shed light on OpenAI and io’s early research, the actual form and function of the hardware remains under wraps. What’s clear is:
- The companies are not committed to making a wearable or audio-focused device.
- They are taking a broad and flexible approach to hardware exploration.
- The final product is still in development, with no launch expected for at least a year.
Final Thoughts: The Future of AI Devices
This legal battle gives the public a rare look into OpenAI’s hardware ambitions. While iyO’s involvement has stirred questions, the filings make it clear OpenAI is forging its own path toward a unique AI device.
In the words of Sam Altman:
“Our intent with this collaboration was, and is, to create products that go beyond traditional products and interfaces.”