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OpenAI’s $6.5B Jony Ive Hardware Deal Survives Trademark Challenge

Legal filings confirm that OpenAI’s 'io' venture is building a nonwearable AI companion device due in 2026 following a temporary injunction over its name.

This image appeared above the project announcement on OpenAI.com
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Overview

  • A federal judge granted a temporary restraining order in favor of Google-backed iyO, forcing removal of all 'io' branding and promotional pages from OpenAI’s channels.
  • OpenAI spokesperson Kayla Wood reiterated that the acquisition of Jony Ive's hardware startup remains intact and that the company is reviewing its legal options.
  • Court documents reveal the prototype device will neither be an in-ear product nor a wearable and is designed to fit in a pocket or sit on a desk.
  • OpenAI executives told staff the first AI hardware release is not expected before 2026 and that the company could produce up to 100 million units as everyday companions.
  • Internal filings show OpenAI and io’s leadership met with iyO’s CEO to evaluate its earpiece technology but declined offers to partner or invest after prototype demonstrations fell short.