OpenAI has been barred by a U.S. court from using the “io” name in connection with its planned AI hardware products, after a ruling found the branding could be confused with that of a competing startup already operating in the AI hardware market.
Origin of the io Startup and OpenAI Acquisition
The startup io was founded in 2024 by Jony Ive, the former Apple designer known for his role in creating the original iPhone and other Apple products. The company was established to develop next-generation hardware designed for artificial intelligence applications.
In May, OpenAI acquired io for an estimated $6.5 billion and announced plans to produce a hardware device as part of its broader product strategy.
Trademark Dispute and Legal Challenge
Google Ventures–backed startup iyO, which develops AI hardware products, filed a lawsuit against OpenAI in June. The company alleged that OpenAI’s use of the “io” branding was confusingly similar to its own name and could mislead consumers.
Earlier this week, the Ninth Circuit Court of Appeals upheld a June decision by a district court to grant a temporary restraining order on the branding, according to Bloomberg Law. The ruling prevents OpenAI, its chief executive Sam Altman, Jony Ive, and IO Products, Inc. from using the “io” trademark for products deemed comparable to those made by iyO.
OpenAI removed all “io” branding from its website in June following the initial court order.
Scope of the Court’s Ruling
The court’s decision does not prohibit OpenAI from using the “io” name in all contexts. The restriction applies only when the branding is used to market products that the court considers similar to those produced by iyO.
In June, OpenAI said on X that it did not agree with the complaint and was reviewing its options. The company has not issued a public statement in response to the latest ruling.
Statements From iyO and Ongoing Litigation Timeline
In July, iyO chief executive Jason Rugolo said it was “appalling” that what he described as a large corporate entity such as OpenAI, along with high-profile figures, would attempt to overpower a smaller startup through branding.
MacRumors reported that the litigation could extend into 2027 or 2028. The case is scheduled to return to the district court for a preliminary injunction hearing in April 2026.
Status of OpenAI’s Planned Hardware Device
OpenAI’s hardware product is expected to be released sometime in late 2026 or 2027. Specific details remain limited. Leaks cited by The Wall Street Journal describe the device as a screenless portable product that is neither smart glasses nor a traditional display. It has been described as a “third core device” intended for use alongside a laptop and a smartphone.
Last month, Jony Ive and Sam Altman said a working prototype of the device already exists.
Featured image credits: Wikimedia Commons
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