The AI gadget project Johnny Iva from OpenAI lost the brand io due to a court ban

Startup io, acquired by Apple designer Jony Ive, found itself at the center of a legal dispute

After OpenAI bought startup io for $6.5 billion in May last year, the company faced a lawsuit from competitor iyO. The court ruled that the names “io” and “IYO” are too similar and prohibited their use in any combination of uppercase and lowercase letters for OpenAI products.

Branding decision

OpenAI vice president Peter Welinder explained that after reviewing the company's strategy it is abandoning names containing “io” or “IYO” when launching and promoting any AI-related devices. The information comes from court documents published by Wired.

Plans to release first AI devices

Welinder also clarified the timeline for OpenAI’s first hardware line. The first model will hit the market no earlier than the end of 2027, not in the second half of this year as many analysts expected. It is anticipated that the device will be small and without its own display—a companion for smartphones and laptops. At present the company is developing packaging and marketing materials.

Viral Reddit video

Over the past weekend a purported promotional video appeared on Reddit, showing a user interacting with a “shabby” device equipped with touch keys and wireless silver headphones. OpenAI stated that this video is not related to its official advertising.

Deal context and future plans

According to statements from io founder Jony Ive, he already has ideas for creating 15–20 new AI devices. However, during the litigation, OpenAI representatives emphasized that the prototype of the first device mentioned by Sam Altman (OpenAI’s CEO) is not wearable and does not fit in ears.

Thus, after acquiring startup io and the subsequent legal dispute, OpenAI is revising its branding decisions and has postponed the launch of its first hardware line to the end of 2027.