Over the weekend, OpenAI removed all promotional materials related to its acquisition of the AI hardware company io from its website and YouTube channel. This was due to a trademark complaint made by iyO, another AI firm, which claimed its name and product similarities could confuse consumers.
But just how similar are io and iyO, really?
The company iyO is focused on creating a voice-controlled audio computer with no screen. It began as a project in Alphabet’s “moonshot” lab and was spun off in 2021, releasing its flagship product, custom AI-powered earphones, last year.
What io is working on, on the other hand, is still quite mysterious.
No display, not wearable, and certainly not in-ear
According to prominent tech analyst Ming-Chi Kuo, OpenAI and io’s device will feature “no display functionality” and can be worn around the neck, similar to the now-discontinued Humane AI pin.
While this sounds like it could be similar to what iyO is working on, documentation released as part of the trademark lawsuit suggests there could be some key differences. Evans Hankey, io’s co-founder and chief product officer, told the court that “io has no current plans to offer a custom-molded earpiece product,” according to a copy of his declaration obtained by TechCrunch.
This sentiment was backed up by Tang Tan, another io co-founder, who said in his declaration that a prototype of io’s creation “is not an in-ear device, nor a wearable device.”
But, io has heavily tested an in-ear design
Tan added that the product is still “at least a year” from being finalised, advertised, or sold, so the details provided about the device not being in-ear could be subject to change. In fact, he said io considered all sorts of device types during the design of the prototype, “desktop-based and mobile, wireless and wired, wearable and portable.”
There is evidence that the device io most seriously considered pursuing was an in-ear device. According to a declaration by io engineer Marwan Rammah, in the months following its 2023 founding, the company purchased at least 30 different headphones because it “wanted to understand the current state of audio products.” Rammah also said he recommended purchasing a database of three-dimensional ear scans from a company called The Ear Project, which iyO also used.
More recently, shortly before the acquisition, both io and OpenAI met with iyO’s leadership to learn more about its product. In his declaration, Tan said he was reluctant to take the meeting as he suspected the iyO product was merely “vaporware,” but he also did not want to see any confidential information, presumably to avoid legal complications if any similarities were to arise.
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It won’t be a phone or a pair of glasses
OpenAI CEO Sam Altman told employees that the AI device will be relatively small, able to sit atop a desk or fit in a pocket, according to a leaked meeting recording acquired by The Wall Street Journal. It will “be fairly aware of a user’s surroundings and life” and consumers will reach for it as often as they use their iPhones and MacBook Pros.
The device won’t be a phone or a pair of glasses, and it is unlikely to be a wearable, Altman added, and its intent is supposedly to wean users off screens.
OpenAI acquired io at the end of last month, appointing its co-founder Jony Ive, formerly Apple’s Chief Design Officer, specifically to lead the design of its upcoming hardware project. Ive and Altman initially agreed to build an AI-driven hardware device two years ago, according to The New York Times. Their shared vision centres on “a product that uses AI to create a computing experience that is less socially disruptive than the iPhone.”
The collaboration has reportedly rattled Apple, according to Bloomberg’s tech insider Mark Gurman; a company that is falling behind when it comes to AI innovation. Its most ambitious AI hardware project to date — augmented reality AI-powered glasses — is expected to debut in late 2026. Meanwhile, the company is still in the early stages of developing smartwatches and AirPods with built-in cameras designed to support AI features.
Want more on OpenAI’s current headaches? Read how Sam Altman accused Meta of poaching his employees.