OpenAI’s debut consumer AI product, developed with former Apple designer Jony Ive through their startup io, won’t be a wearable device, according to recent court filings. Dated June 21, the filings come amid a trademark spat sparked by a Google-backed startup called Iyo that builds AI-enabled earpieces.
Tang Tan, io’s chief hardware officer and longtime Apple executive, declared in court on June 16 that io’s public announcement video “did not advertise any specific product because io currently has no products for sale.” He added that the prototype shown by OpenAI CEO Sam Altman won’t ship until 2026. “Its design is not yet finalized, but it is not an in-ear device, nor a wearable device,” read the filings. Further, the filing reads: “io has not sold, offered for sale, distributed, or advertised any products or services.”
Following the dispute, OpenAI scrubbed promotional materials related to its $6.5 billion acquisition of io to comply with a June 22 court order. OpenAI said it is fighting Iyo’s allegations of trademark infringement.
“jason rugolo had been hoping we would invest in or acquire his company iyo and was quite persistent in his efforts. we passed and were clear along the way,” Altman wrote on X today. “now he is suing openai over the name. this is silly, disappointing and wrong.”
Court documents reveal that over the past year, OpenAI executives and former Apple veterans at io researched in-ear hardware. Emails in the filings show that OpenAI leaders, including Altman, were aware of Iyo’s products and requested demos of what Iyo called an “audio computer.”
According to OpenAI’s June 12 opposition to Iyo’s lawsuit, io explored a wide range of devices after its founding—including desktop, mobile, wired, wireless, wearable, and portable devices. As part of this early work, io acquired numerous earbuds, hearing aids, and at least 30 headphone models from various companies.
