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Trademark dispute with iyO provides insight into OpenAI project

Milan Jovicic by Milan Jovicic
June 24, 2025 - 06:18 CEST
in Apple News
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OpenAI trademark dispute

Image: Shutterstock / Camilo Concha

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OpenAI is developing a new hardware product together with former Apple chief designer Jony Ive. This has been known for some time. What was previously unclear, however, was what exactly this device is, what exactly the team is working on, and how far along it is in development? New details from publicly available court documents provide the first deeper insight into the project – and at the same time confirm what it is not: not a wearable, not an in-ear product.

At the center of the new information is a trademark dispute between OpenAI and the Google-backed startup iyO. It concerns the name "io," which OpenAI's subsidiary, "io Products, Inc.", intends to use. iyO considers this name too similar to its own brand. In the course of the proceedings, documents were made public that reveal much more than just legal arguments. They demonstrate how intensively OpenAI has explored audio technology, what Jony Ive's team is specifically interested in, and why the result is nevertheless a completely different product.

OpenAI wanted to know more about in-ear technology – but kept its distance

According to court documents, representatives from OpenAI met with iyO CEO Jason Rugolo. They wanted to learn more about iyO's in-ear product. Tang Tan, a former Apple executive who now works as Chief Hardware Officer at io Products, was particularly active. Internal emails, however, show that although the meetings were planned, the team was not impressed by the product demos. There were several presentations that apparently were not convincing. Nevertheless, it cannot be denied that OpenAI spent months intensively analyzing the market for in-ear devices. Other audio devices were also in focus. However, Tang Tan clearly stated in court that the planned product was neither an in-ear device nor a wearable device.

Altman: “We think beyond classic interfaces”

Sam Altman, CEO of OpenAI, confirmed this statement with his own statement. The goal of the collaboration with Jony Ive is to develop new product forms – beyond the usual hardware categories. He once described the device as something "that fits in your pocket or sits on your desk." However, the design is not yet finalized. According to current information, the market launch is at least a year away.

The interest in iyO was real – especially in a certain technology

One technical detail piqued the OpenAI team's interest: iyO uses a special process to precisely measure ears via 3D scanning. This allows for customized in-ear devices to be fitted. Marwan Rammah, also a former Apple engineer and now part of io Products, even suggested internally purchasing a database of iyO's ear scans. This could be helpful for improving the ergonomics of future products. iyO tried to capitalize on this interest. The CEO repeatedly offered OpenAI a partnership, investment, or even a full acquisition for up to $200 million. Tang Tan rejected all offers.

No individually shaped earphone planned

Evans Hankey, another former Apple executive who now heads design at io Products, clarified in a written statement: "The company does not plan to launch a custom-molded earbud product. This statement is clear and rules out any such product line at this time."

So what are we working on?

What the documents reveal: OpenAI has learned a lot about in-ear devices, but deliberately wants to take a different path with its first AI device. Everything points to a new interface—a device that doesn't adhere to existing categories like wearables or audio products. Development is being led by a team deeply rooted in Apple's hardware and design world. In addition to Jony Ive, Tang Tan, Marwan Rammah, and Evans Hankey, Sam Altman himself plays a central role. The experience and expertise of this team suggests that this isn't an experiment, but an ambitious product with high design quality.

OpenAI's future device: No headphones, no glasses, but AI

OpenAI is launching io Products, a hardware device that deliberately doesn't fall into the wearable or in-ear category. Despite extensive research and technological interest in the audio field, including 3D ear scanning, the first product will take a different approach. According to court documents, it's still at least a year away from announcement. One thing is clear: It's intended to enable a new way of interacting with AI—beyond headphones, watches, or glasses. If you want to know how AI will integrate into your everyday life in the future, you should keep an eye on this project. (Image: Shutterstock / Camilo Concha)

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Milan Jovicic

Milan Jovicic

Milan founded Apfelpatient in 2016 and has been responsible for all editorial content since 2018 — news, rumors, guides, and product reviews. Apple devices here are not test units on loan for two weeks but everyday tools: from the iPhone through MacBook Pro, MacBook Air, and iMac to the Apple Vision Pro, at least one device from nearly every product category is in daily use, many of them replaced annually. Every menu path in a guide is verified on the device before it is published.

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