In May 2025, OpenAI announced a $6.5 billion deal to acquire io, an AI hardware startup co-founded by Jony Ive, the legendary former Apple designer behind the iPhone. The partnership, hyped as a game-changer, aimed to create a new family of AI-powered devices. A splashy video and blog post featuring Ive and OpenAI CEO Sam Altman fueled excitement. But by June 2025, OpenAI removed all mentions of the deal from its website and YouTube channel. Why did this happen, and what does it mean for the partnership? The answer lies in a trademark dispute, but the deal itself remains intact.
The trouble started with a company called iyO, a startup spun out of Google’s moonshot lab that makes AI-powered earbuds. In June 2025, iyO filed a trademark lawsuit against OpenAI, claiming the name “io” was too similar to its own brand and could confuse consumers. A judge found iyO’s argument credible enough to issue a court order, forcing OpenAI to pull all promotional materials using the “io” name. This included the nine-minute video where Ive and Altman discussed their vision and a blog post detailing the partnership. OpenAI’s website now displays a message: “This page is temporarily down due to a court order following a trademark complaint from iyO about our use of the name ‘io.’ We don’t agree with the complaint and are reviewing our options.”
The lawsuit caught attention because iyO had previously approached OpenAI for funding or a partnership, which OpenAI declined. Some speculate iyO’s legal move was a reaction to being snubbed, though iyO insists it’s about protecting its brand. Its flagship product, the iyO ONE, is marketed as the “world’s first audio computer,” and the company argued that OpenAI’s use of “io” could mislead customers. Jony Ive’s team called the complaint “utterly baseless” and vowed to fight it, but for now, OpenAI had to comply with the court’s order.
Despite the takedown, OpenAI and Ive’s partnership is not in jeopardy. OpenAI confirmed to media outlets that the $6.5 billion acquisition of io is still on track, with about 55 engineers and designers from io joining OpenAI to work on AI devices. Ive’s design firm, LoveFrom, will lead creative direction for OpenAI’s hardware and software, while remaining independent. The first device, described as a pocket-sized, screen-free gadget that’s “contextually aware,” is expected to launch in 2026. Altman called a prototype “the coolest piece of technology” he’s ever seen, hinting at its ambitious design.
The io project aims to create devices that complement, not replace, smartphones or laptops. Unlike the failed Humane AI Pin, which struggled with overheating and limited features, Ive and Altman want an unobtrusive device that enhances daily life through AI. However, the trademark dispute highlights a challenge: even a small naming issue can disrupt a high-profile launch. Social media buzz on X speculated that the deal was falling apart, with users noting the sudden removal of content, but OpenAI and Ive’s team quickly clarified that the partnership remains strong.
The dispute raises questions about whether the final product will use the “io” name. OpenAI could rebrand to avoid further legal battles, but this could delay marketing efforts. For now, both sides are focused on fighting the lawsuit while continuing development. The situation echoes past tech naming disputes, like Apple’s battle over the “iPhone” name with Cisco in 2007, which was settled out of court. A similar resolution might be possible here.
In the end, the removal of the Jony Ive partnership page was a legal hiccup, not a deal-breaker. The vision of combining Ive’s design genius with OpenAI’s AI expertise still holds promise. If they can navigate the trademark issue and deliver a groundbreaking device, this partnership could reshape how we interact with AI. For now, fans will have to wait to see what Ive and Altman create-and what they’ll call it.
Credit: Sam Altman, Jony Ive.