OpenAI Drops "io": AI Hardware Shock 🤯💥
Tech
🎧
OpenAI has abandoned the name “io” for its upcoming line of AI hardware devices, according to a court filing made last month. Vice President and General Manager Peter Welinder stated that the company had reviewed its product-naming strategy and would not utilize “io” or variations thereof in connection with hardware sales. This decision follows a trademark infringement lawsuit filed by iyO, which OpenAI acquired for $6.5 billion back in May 2025. The acquisition was intended to create a family of AI devices. However, the lawsuit has revealed details about OpenAI’s initial prototype, a screenless desk device, and highlighted a meeting between OpenAI leaders and iyO executives. The company’s first hardware device is not expected to ship before the end of February 2027, and packaging and marketing materials remain unproduced. This situation underscores the complexities of OpenAI’s hardware ambitions and the challenges associated with navigating intellectual property disputes.
OPENAI’S SHIFTING STRATEGY: A RESPONSE TO TRADEMILLING CONCERNS
OpenAI has significantly altered its approach to product naming, specifically abandoning the “io” moniker for its upcoming line of AI hardware devices. This decision, formalized in a recent court filing, stems directly from a trademark infringement lawsuit initiated by audio startup iyO. Peter Welinder, OpenAI’s vice president and general manager, articulated this shift, stating the company’s comprehensive review of its product-naming strategy and the deliberate choice to exclude “io” (or any capitalization variations) from the branding of its artificial intelligence-enabled hardware. This proactive step underscores a heightened awareness of intellectual property rights and a strategic response to potential legal challenges. The timeline for device release has also been adjusted, with the first hardware device now slated for shipment no earlier than the end of February 2027, a delay from the previously projected second half of 2026. This revised schedule reflects the complexities surrounding the acquisition and the associated legal proceedings.
THE ACQUISITION OF IO AND ITS IMMEDIATE CONSEQUENCES
OpenAI’s ambitious foray into consumer hardware gained considerable momentum with the $6.5 billion acquisition of Jony Ive’s secretive consumer hardware subsidiary, iyO, announced back in May 2025. Initially, iyO was presented as a nascent company poised to synergize with OpenAI, ultimately forming a family of AI devices. However, this strategy quickly became entangled in a contentious trademark lawsuit filed by iyO, alleging that OpenAI and io executives engaged in preliminary testing of the company’s AI audio technology prior to the acquisition announcement. This revelation has significantly complicated OpenAI’s hardware development process and highlighted the potential for legal complications. Furthermore, the lawsuit has exposed a previously undisclosed detail: that the prototype CEO Sam Altman mentioned in io’s launch video was “not an in-ear device, nor a wearable device,” adding another layer of scrutiny to the company’s early product concepts.
RUMORS, DEBUNCHED ADS, AND A DELAYED LAUNCH
The announcement of the acquisition fueled a flurry of rumors surrounding OpenAI’s hardware ambitions, culminating in a now-debunked Reddit thread that circulated widely over the weekend. The thread featured an alleged Super Bowl ad showcasing actor Alexander Skarsgård wearing silver headphones and tapping a reflective puck. The widespread sharing of this video, including by Reddit co-founder Alexis Ohanian, demonstrated the considerable public interest in OpenAI’s hardware plans. OpenAI spokesperson Lindsay McCallum swiftly clarified that the company had no involvement in the ad’s creation. This episode further amplified the pressure on OpenAI to deliver on its hardware promises, while simultaneously illustrating the challenges of managing public perception and misinformation in the rapidly evolving landscape of AI development. The delayed launch of the first hardware device, now scheduled for shipment no earlier than February 2027, reflects the combined impact of the trademark litigation, the need for revised product development, and the ongoing management of public expectations.
This article is AI-synthesized from public sources and may not reflect original reporting.