OpenAI Abandons “io” Brand Name Amid Trademark Battle, Sets 2027 Launch for Mysterious AI Hardware

In a stunning twist that blends Silicon Valley intrigue with courtroom drama, OpenAI has officially confirmed it will not use the name “io” for its highly anticipated line of artificial intelligence-powered hardware devices. The revelation comes via a Monday court filing in response to a trademark infringement lawsuit filed by audio technology startup iyO, which accused OpenAI of poaching both its name and intellectual property after acquiring the hardware design firm led by legendary Apple designer Jony Ive.

According to the filing, OpenAI Vice President and General Manager Peter Welinder stated unequivocally that the company has “decided not to use the name ‘io’ (or ‘IYO,’ or any capitalization of either) in connection with the naming, advertising, marketing, or sale of any artificial intelligence-enabled hardware products.” This strategic retreat from the contested branding marks a significant pivot for OpenAI’s hardware ambitions, which were initially unveiled with considerable fanfare when the company announced its $6.5 billion acquisition of Ive’s io in May 2025—the largest acquisition in OpenAI’s history.

The timing of this name change is particularly noteworthy, as it coincides with OpenAI’s newly disclosed timeline for bringing its first AI hardware device to market. According to Welinder’s filing, customers shouldn’t expect to see the product before the end of February 2027—a date that pushes the launch well beyond previous estimates and suggests the project may be facing more technical and regulatory hurdles than initially anticipated.

This 2027 timeline represents a significant delay from OpenAI’s earlier projections. Company executives had previously indicated that the AI device would debut in the second half of 2026, generating considerable speculation about what exactly the company has been developing in secret. The filing also revealed that OpenAI has yet to create packaging or marketing materials for its first hardware device, suggesting the project remains in relatively early stages despite the high-profile acquisition and substantial investment.

What makes this development particularly fascinating is the context of the ongoing legal battle with iyO. The audio device startup alleges that OpenAI and io executives met with iyO leadership and tested the company’s AI audio technology before the acquisition was publicly announced. This claim, if proven true, could suggest that OpenAI’s hardware strategy was influenced—or perhaps even inspired—by technology developed by a smaller competitor.

The mystery surrounding OpenAI’s hardware ambitions has only deepened in recent weeks, fueled by a bizarre incident involving a viral hoax. Over the weekend, a now-debunked Reddit thread claimed that OpenAI had pulled a Super Bowl ad unveiling its forthcoming device. The alleged ad, which featured actor Alexander Skarsgård wearing silver headphones and interacting with a reflective puck-shaped device, spread like wildfire across social media platforms. Even Reddit cofounder Alexis Ohanian shared the video, lending it credibility before it was revealed to be completely fabricated.

OpenAI spokesperson Lindsay McCallum quickly moved to quash the rumors, confirming to WIRED that the ChatGPT-maker had nothing to do with the Super Bowl ad in question. However, the incident highlights the intense public curiosity and speculation surrounding OpenAI’s hardware plans, as well as the company’s challenges in controlling its narrative amid such high expectations.

The legal filings have also provided some intriguing details about what OpenAI’s first device might actually be. In previous court documents, OpenAI leaders revealed that the prototype CEO Sam Altman mentioned in io’s launch video was “not an in-ear device, nor a wearable device.” This eliminates several categories of speculation and suggests that OpenAI may be developing something more stationary or desk-based—perhaps a smart home hub or AI assistant that serves as a central node for a user’s digital life.

Industry analysts have been quick to note the significance of OpenAI’s decision to abandon the “io” branding. “This is a major strategic retreat that suggests OpenAI may have underestimated the legal and competitive challenges involved in entering the hardware market,” said one technology industry consultant who requested anonymity. “The fact that they’re willing to walk away from a name they’ve already invested heavily in indicates they may be facing more serious obstacles than they’ve let on.”

The timing of these revelations is particularly interesting given the current state of the AI hardware market. With companies like Humane and Rabbit already facing significant challenges with their AI-powered devices, OpenAI’s cautious approach and extended timeline may reflect a desire to avoid similar pitfalls. The company appears to be taking a more measured approach, potentially learning from the mistakes of earlier entrants into this nascent market.

As OpenAI navigates these challenges, the broader tech industry continues to watch with bated breath. The company’s entry into hardware represents a significant expansion of its ambitions beyond software and cloud services, potentially positioning it as a direct competitor to established players like Apple, Google, and Amazon in the consumer device space.

The abandoned “io” name, the delayed timeline, and the ongoing legal battles all point to a project that is proving more complex and challenging than OpenAI may have initially anticipated. Yet the company’s willingness to invest billions and pursue this vision despite the obstacles suggests that CEO Sam Altman and his team believe AI-powered hardware represents a crucial frontier in the evolution of artificial intelligence.

Whether OpenAI’s patience and deep pockets will ultimately pay off remains to be seen, but one thing is clear: the race to define the future of AI hardware is just beginning, and OpenAI has positioned itself as a major player in this emerging competition.

Tags: OpenAI, Jony Ive, AI hardware, trademark lawsuit, iyO, io acquisition, Super Bowl ad hoax, 2027 launch, artificial intelligence, hardware device, Sam Altman, Silicon Valley, tech industry, AI devices, consumer electronics

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