- OpenAI and Jony Ive’s io explored in-ear AI devices but clarified their first product will not be wearable or in-ear.
- Court filings from a trademark lawsuit with iyO revealed extensive hardware research and meetings with iyO’s leadership.
- Internal emails showed interest in iyO’s 3D ear scan data, but no formal partnership or acquisition deal was made.
- OpenAI’s upcoming device is at least a year away and is designed to be a new type of AI product, distinct from existing smartphones or laptops.
Court filings submitted earlier this month have revealed new insights into OpenAI’s ambitious collaboration with legendary designer Jony Ive and his hardware startup, io.
According to legal documents filed in response to a trademark dispute with Google-backed startup iyO, the team has spent the past year exploring various consumer AI hardware concepts. While they initially investigated in-ear devices, filings suggest the final product may be something else entirely.
The lawsuit, brought by iyO, claims that OpenAI’s branding infringes on its own trademarks. iyO is known for developing custom-molded earpieces that interface with other devices, and the company is financially backed by Google.
In light of the legal dispute, OpenAI has removed marketing materials related to its $6.5 billion acquisition of io, in compliance with a court order. OpenAI has denied any infringement and is defending itself against iyO’s claims.
Despite the legal battle, the filings offer a rare glimpse into the experimental phase of OpenAI and io’s hardware project.
Documents submitted on June 12 show that both companies conducted deep research into the current headphone market, purchasing at least 30 different models from a range of manufacturers to better understand existing technology.
Internal emails and meeting records further reveal that executives from OpenAI and io met directly with iyO leadership to evaluate their in-ear product.
However, in statements provided to the court, io’s chief hardware officer Tang Tan made it clear that the AI prototype currently in development is neither an in-ear device nor a wearable.
Tan, who previously served as a top hardware executive at Apple, said that the final design of the product is not yet complete and it is unlikely to be advertised or made available to consumers for at least another year.
Tan’s declaration directly counters any assumption that OpenAI’s first foray into hardware will resemble traditional wearable tech. According to the filings, the device is still being conceptualized, and all options remain on the table.
OpenAI CEO Sam Altman previously described the product as a “third device”, one that would serve as a companion to smartphones and laptops. Altman suggested the device could be compact enough to fit in a pocket or sit unobtrusively on a desk while maintaining awareness of the user’s surroundings.
Altman also emphasized in his court statement that the partnership with Jony Ive’s io was never about simply reinventing existing technology. Instead, the goal has always been to reimagine the very nature of how we interact with AI in physical form. “Our intent with this collaboration was, and is, to create products that go beyond traditional products and interfaces,” he stated.
The court filings also highlight the wide range of device formats under consideration by OpenAI. According to the documents, the company explored possibilities across the spectrum, including desktop-based, mobile, wired, wireless, wearable, and fully portable hardware.
While the broader tech industry is currently focused on developing AI-enabled smart glasses and earphones, OpenAI and io appear to be taking a broader, more exploratory approach.
Emails disclosed during the case show that io team members were intrigued by some of iyO’s ergonomic innovations.
One email from Marwan Rammah, a former Apple engineer now working at io, suggested that purchasing a library of 3D ear scans from a partner company called The Ear Project could provide useful design insights. However, it remains unclear whether such a deal ever went through.
The relationship between the two companies appears to have soured after a series of unsuccessful meetings. On May 1, OpenAI’s VP of Product, Peter Welinder, and io’s Tang Tan met with iyO CEO Jason Rugolo at io’s Jackson Square offices in San Francisco. According to follow-up emails cited in court, the iyO product failed several times during demonstrations, disappointing OpenAI and io executives.
Despite the missteps, iyO continued trying to forge a deeper partnership. Rugolo reportedly proposed a range of ideas to OpenAI, including using iyO’s product as a developer kit, securing investment, or even selling the entire company for $200 million. All proposals were ultimately declined.
In his court statement, Tan said he agreed to the meeting only out of respect for a former Apple colleague, Steve Zadesky, and took care to avoid exposure to proprietary information.
Evans Hankey, another former Apple executive and current chief product officer at io, added in a court declaration that the company is not pursuing a custom-molded earpiece. This further supports the notion that OpenAI’s first hardware product will look very different from iyO’s offering.
Although the legal dispute remains unresolved, the filings make one thing clear: OpenAI and io are taking a bold, unconventional approach to consumer AI hardware.
The companies are still at least a year away from launching anything, and the exact shape and function of the device remain a closely guarded secret. However, the court documents offer a rare glimpse into a process that could transform how we interact with artificial intelligence in our daily lives.
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