OpenAI and Jony Ive’s design firm, IO, are quietly working on a new AI-powered hardware device, and recent legal filings have offered a rare glimpse into their plans. The details emerged from a trademark dispute involving iYo, a Google-backed startup that develops custom-fit in-ear devices. iYO has accused OpenAI and iO of infringing on its trademark, prompting a court order that forced OpenAI to pull promotional content related to its $6.5 billion acquisition of iO. Despite the legal battle, OpenAI has confirmed that it is moving forward with developing consumer AI hardware, although the final product may differ significantly from what people expect.
Contrary to speculation, the filings suggest the device being developed is not an in-ear gadget or a wearable. Tang Tan, a former Apple executive and now io’s chief hardware officer, clarified that the prototype showcased in their initial video is neither wearable nor ear-based. The device’s design is still evolving, and it will not be ready for advertising or commercial release for at least another year. Sam Altman, CEO of OpenAI, previously described it as a “third device” meant to complement a smartphone and a laptop, suggesting it would be compact enough to sit on a desk or fit in a pocket, and capable of understanding its environment.
The collaboration between OpenAI and io seems focused on rethinking how humans interact with machines. According to court filings, the companies have tested dozens of headphones and explored a wide range of product types from desktop-based to mobile, from wired to wireless. This exploration appears to be part of a broader attempt to find the right form factor for their vision of AI hardware. While other tech giants like Meta and Google are racing to produce AI-enabled smart glasses, OpenAI’s ambitions are broader and more experimental.
Interestingly, despite claiming they are not working on in-ear devices, OpenAI and io showed considerable interest in iYO’s products. Senior leaders from both companies even tested iO’s custom earpieces during a visit, though the demo was reportedly underwhelming. Follow-up emails show that the IO staff considered purchasing a database of ear scans to guide ergonomic design decisions, though it is unclear whether any agreement was reached. Meanwhile, iO’s CEO attempted to pitch various partnerships and investment opportunities to OpenAI and iO, including the sale of his entire company, but those offers were declined.
What’s becoming clear is that OpenAI’s first device is unlikely to be a conventional gadget. It may not be wearable, and it may not rely on familiar interfaces. Instead, the project seems driven by a desire to create something entirely new, something that aligns with Jony Ive’s legacy of minimalism and innovation, and OpenAI’s ambition to embed intelligence directly into the tools we use every day. Though the legal dispute with iYO has revealed some of the back-and-forth behind the scenes, it has also made one thing certain: OpenAI is not just building chatbots anymore, it’s building the future of how we interact with technology.
