A trademark lawsuit has revealed that OpenAI and Jony Ive’s first AI hardware device—now delayed until 2026—will not be a wearable or in-ear product, despite earlier explorations of those formats and internal emails showing direct knowledge of a competing startup’s plans. (Source: Image by RR)

Device Prototypes Included Desktop, Mobile, Wired, Wireless and Wearable Concepts

Recent court filings have shed unexpected light on OpenAI and Jony Ive’s mysterious AI hardware project—revealing not what it is, but what it decidedly is not. According to statements from leaders of io, the hardware startup OpenAI acquired from Jony Ive’s LoveFrom design studio for $6.5 billion, their first device will not be an “in-ear device” or “wearable,” and it won’t arrive before 2026. This clarification comes amid a trademark dispute with Iyo, a separate audio startup whose pending product—a wearable audio computer—bears an uncanny resemblance in concept and branding to what OpenAI’s team had been exploring.

According to a story in the verge.com, court documents revealed  that OpenAI and io were well aware of Iyo’s existence and product plans prior to launching their similarly named brand. Emails submitted as evidence show that Altman himself declined a personal investment opportunity from Iyo, citing competitive interests. Meanwhile, internal communications among io’s hardware team suggest they had, at one point, explored in-ear and headphone-based form factors—reviewing ergonomic scans of human ears and purchasing dozens of existing devices for research. Despite these prototypes, the current direction of io’s product line appears to be shifting away from wearables entirely.

The trademark lawsuit, filed by Iyo, prompted a temporary restraining order that forced OpenAI to scrub public references to the “io” brand. In their June 12th opposition filing, OpenAI argued that their use of the name was unrelated to Iyo’s branding, though they acknowledged conducting extensive market research on similar devices. The filings also reveal that io’s hardware concept is still in flux, and according to chief hardware officer Tang Tan, the prototype Altman referenced in earlier public statements is still at least a year away from commercialization.

This rare glimpse into the secretive collaboration between OpenAI and Ive illustrates just how competitive and litigious the AI hardware race has become. While the device’s final form remains under wraps, it’s clear that OpenAI and io are positioning themselves for a significant, possibly category-defining product launch—albeit on a slower timeline than some expected. The incident also highlights how closely intertwined branding, IP strategy, and product design have become in the AI hardware space, especially when tech heavyweights and design legends enter the fray.

read more at theverge.com