Uh-oh, “io”: Trademark fight threatens OpenAI and Jony Ive’s $6.5B AI hardware venture

OpenAI and Jony Ive’s highly anticipated AI hardware venture has hit a major legal roadblock after a court order forced the removal of their partnership announcement due to a trademark dispute. The conflict centers on the “io” name for Ive’s startup, which another AI company claims infringes on their existing trademark, potentially forcing a costly rebrand of the $6.5 billion collaboration.

What happened: OpenAI was forced to remove its blog post announcing the acquisition of Jony Ive’s hardware startup “io” following a court order triggered by trademark complaints from a company called iyO.

• The original blog post detailed a $6.5 billion deal between OpenAI and Ive’s design company, which would have merged the “io” team with OpenAI’s research and product development operations in San Francisco.
• OpenAI posted a notice clarifying that while the blog post was removed, the partnership with Ive remains intact: “We don’t agree with the complaint and are reviewing our options.”

The trademark challenger: iyO is an AI hardware company that already markets an “audio computer” device similar to the now-defunct Humane AI Pin.

• The company’s product functions as AI-powered earbuds capable of running natural language applications.
• iyO claims the “io” name used by Ive’s startup violates their existing trademark rights.

Why this matters: The legal dispute could force one of the most high-profile AI hardware partnerships to undergo a complete rebrand, potentially delaying product development and market entry.

• The collaboration between OpenAI’s AI capabilities and Ive’s legendary design expertise—previously behind iconic Apple products like the iPhone and iPad—represents a significant attempt to create consumer-friendly AI hardware.
• The trademark conflict highlights the increasingly crowded AI hardware space, where even company names are becoming contested territory.

What’s next: The outcome of the trademark dispute will determine whether OpenAI and Ive must abandon the “io” branding or if they can successfully challenge iyO’s claims in court.