OpenAI and io’s AI Device Plans Unveiled Amid Trademark Lawsuit
OpenAI and Jony Ive’s design firm io have been working on a mysterious AI hardware device, and recent court documents shed new light on what to expect. As part of an ongoing trademark lawsuit with a Google-backed startup named iyO, legal filings have revealed that OpenAI and io are developing what they describe as a revolutionary AI device that could sit between your phone and laptop. Although no final product design has been announced yet, the filings offer a closer look at the duo’s intent to disrupt the consumer hardware space with artificial intelligence. This new information comes at a time when OpenAI and io are fighting claims of trademark infringement from iyO, whose similarly named wearable tech has created confusion.
Image Credits:Tomohiro Ohsumi / Getty Images
Let’s break down what the lawsuit tells us about the new AI hardware, OpenAI and io’s vision for this tech, and how it might change the future of smart devices.
Background of the OpenAI and io Collaboration
OpenAI, best known for its work in generative AI, and Jony Ive’s io design studio—led by former Apple hardware veterans—have joined forces to create a new class of AI devices. Their partnership has already resulted in a $6.5 billion acquisition of io by OpenAI, highlighting the seriousness of their ambitions.
Legal filings submitted on June 12 as part of the iyO lawsuit show that OpenAI and io executives have spent the past year researching and testing in-ear hardware products. They’ve reportedly bought more than 30 headphone models to evaluate current market trends and performance benchmarks. Additionally, both companies met with iyO to understand their technology, with some email exchanges suggesting they even demoed prototypes.
Despite this deep interest in audio wearables, OpenAI and io are now stating their first product won’t be an in-ear or wearable device at all. According to Tang Tan, io’s Chief Hardware Officer and former Apple executive, the prototype mentioned in io’s launch video isn’t wearable. Instead, it’s described as a compact, smart device designed to fit in your pocket or sit on a desk—serving as a third option alongside smartphones and laptops.
The AI Device Vision: A "Third Device" for the Future
So, what exactly is OpenAI and io’s AI device? According to court declarations and internal communications, the vision is to create a family of AI-first hardware products that are deeply context-aware, portable, and seamlessly integrated into daily life.
CEO Sam Altman told OpenAI employees that the prototype would go beyond simple voice assistants or traditional smart speakers. Instead, it’s intended to be an ever-present assistant—aware of your environment, ready to help, and designed to offer a more natural interaction model than current screens and touch interfaces. This suggests a device capable of sensing surroundings and context, possibly using computer vision, audio input, and advanced AI reasoning to interact with users in real time.
Jony Ive, who played a pivotal role in designing the iPhone and Apple Watch, has expressed that this prototype has “completely captured” his imagination. That statement alone hints at a product that could deliver a leap in user experience, similar to what the iPhone did in 2007. By using AI to anticipate needs, understand tasks, and proactively assist, this device may set a new benchmark for consumer electronics.
Lawsuit with iyO and What It Means for OpenAI's Launch Plans
The excitement around OpenAI and io’s hardware innovation has been slightly dampened by a legal dispute. The lawsuit, filed by iyO—a startup building custom-molded smart earpieces—accuses OpenAI of trademark infringement due to the similarity between “iyO” and “io.” This naming confusion has led to a court order, forcing OpenAI to pull promotional materials related to its acquisition and pause some public-facing initiatives.
OpenAI has firmly denied any wrongdoing, stating its branding decisions were made independently and without malicious intent. While this lawsuit might delay marketing efforts, it doesn’t seem to have halted development. Court declarations make it clear that OpenAI and io are still in the prototyping phase, and the final design won’t be available for at least another year.
This timeframe gives the companies space to refine their product, build on early R&D, and possibly rebrand if required. Meanwhile, consumers and tech watchers remain eager to see what this "third device" will look like—and whether it can live up to the transformative expectations set by its creators.
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