OpenAI and Jony Ive’s ambitious AI hardware venture faces a significant setback as a federal appeals court has prohibited the use of the ‘io’ name. This ruling arose from a trademark dispute with Google-backed iyO, which claimed consumer confusion due to the phonetic similarity of the names ‘IO’ and ‘iyO.’ The Ninth Circuit Court upheld a temporary restraining order, requiring OpenAI to rebrand its upcoming AI hardware. This legal conflict, initiated when iyO sued OpenAI after its acquisition of Ive’s startup, may extend until 2028. iyO’s CEO, Jason Rugolo, previously sought funding from OpenAI for a competitive project, which Altman declined. The fear of “reverse confusion,” where the larger company overshadows the original brand, influenced the court’s decision. OpenAI has since removed ‘io’ branding from its marketing, but its AI hardware is still slated for release in late 2026 or 2027 under a new name.
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