OpenAI has now officially scrapped its plans to brand its new AI hardware as “io,” after the trademark issue that started last year.
A court document dropped this week, and it’s got some interesting details about what’s really going on behind the scenes.
The Name Game Gets Messy
Here’s the deal. OpenAI is getting sued by a company called iyO. They make audio devices, and they’re not happy about the whole “io” situation.
In a court filing this Monday, OpenAI made things crystal clear. They won’t slap the “io” name (or “IYO” in any form) on their AI hardware.
Peter Welinder leads product at OpenAI. He’s the one who confirmed this change.
Why the switch? Well, legal headaches tend to make companies rethink their strategies.
When Can You Actually Buy This Thing?
Remember when OpenAI said you’d see their device in late 2026? Yeah, about that…
According to the same court filing, don’t hold your breath.
The first device won’t reach customers until at least March 2027.
What We Know About the Device
OpenAI is being super secretive. But here’s what’s leaked out:
- It’s screenless – Think of it more like a smart speaker than a phone
- Desktop companion – It’ll sit on your desk alongside your laptop and phone
- Still in prototype phase – No marketing materials exist yet
- Not wearable – Definitely not earbuds or a smartwatch
| Feature | Details |
|---|---|
| Release Date | After February 2027 |
| Form Factor | Screenless desktop device |
| Original Timeline | Second half of 2026 |
| Current Status | Prototype stage |
That Fake Super Bowl Ad Had Everyone Fooled
Over the weekend, Reddit exploded. Someone posted what looked like an OpenAI Super Bowl commercial.
The video showed actor Alexander Skarsgård wearing sleek silver headphones. He tapped a shiny puck-shaped device. It looked legit. People ate it up.
Even Reddit co-founder Alexis Ohanian shared it. That’s how convincing it was.
But guess what? It was completely fake.
OpenAI spokesperson Lindsay McCallum shut down the rumors fast. The company had absolutely nothing to do with that ad.
Think about it. Why would OpenAI drop a Super Bowl ad for a product that won’t ship for over a year? It didn’t add up.
The $6.5 Billion Deal That Started It All
Let’s rewind to May 2025. OpenAI made headlines with its biggest acquisition ever.
They bought Jony Ive’s company for a whopping $6.5 billion. You know Jony Ive, right?
The design genius behind the iPhone and MacBook.
His startup was called “io.” The plan seemed simple enough. Merge io’s design expertise with OpenAI’s AI technology. Create amazing AI devices together.
Except there was one problem. Another company was already using a similar name.
The Legal Battle Brewing
iyO isn’t just mad about the name. They claim something more serious happened.
According to their lawsuit, OpenAI and io executives actually met with iyO’s team. They tested iyO’s AI audio technology. Then, shortly after, they announced the acquisition.
Coincidence? iyO doesn’t think so.
This lawsuit has accidentally revealed tons of details OpenAI probably wanted to keep quiet. That’s what happens in legal discovery. Companies have to share information they’d rather keep secret.
What Does This Mean for OpenAI’s Hardware Dreams?
OpenAI is known for ChatGPT. That’s software. Now they’re jumping into hardware.
It’s a huge pivot. And honestly? It’s not going smoothly.
First, the trademark issues. Then, the delayed timeline. Add in fake viral ads confusing everyone. It’s been a bumpy ride.
But here’s the question: Does OpenAI even need to make physical devices?
Their AI already works on every smartphone, laptop, and tablet out there. What makes a standalone device special?
The Bigger Picture
Several tech giants are racing to create AI hardware. Remember Google’s Pixel phones? Amazon’s Alexa devices? Apple’s rumored AI gadgets?
Everyone wants a piece of this market. The thinking goes like this: If you control the hardware, you control how people experience AI.
It’s about creating an ecosystem. Think about how Apple has the iPhone, iPad, Mac, and Apple Watch. They all work together seamlessly.
OpenAI seems to want the same thing. But getting there won’t be easy.
Challenges Ahead
Here’s what OpenAI is up against:
- Manufacturing complexity – Making hardware is way harder than software
- Supply chain issues – Ask any tech company about chip shortages
- Consumer expectations – People expect perfection from day one
- Competition – Tech giants have decades of hardware experience
What Happens Next?
The lawsuit with iyO continues. OpenAI needs to pick a new name. And they’ve got until 2027 to figure everything out.
Will they make the deadline? Hard to say.
One thing’s certain: Whatever they call this device, it better be good. OpenAI has built massive hype. Expectations are sky-high.
They’ve got time to get it right. Let’s hope they use it wisely.
