Editorial illustration for OpenAI Drops ‘io’ Brand After USD 6.5 B Acquisition of Jony Ive’s Hardware Unit
OpenAI Loses 'io' Trademark Battle with AI Startup
OpenAI Drops ‘io’ Brand After USD 6.5 B Acquisition of Jony Ive’s Hardware Unit
OpenAI spent $6.5 billion last May to buy Jony Ive’s design firm and its sleek "io" brand. That’s an astonishing sum for a name. Now, they can’t use it.
A trademark lawsuit from a company called iyO forced their hand, alleging OpenAI and io executives had previously met with them and tested their audio tech. The io brand is being scrapped. The retreat is stunningly fast for a deal of this magnitude.
OpenAI announced back in May 2025 that it would acquire Jony Ive's secretive consumer hardware subsidiary for $6.5 billion, marking the company's largest acquisition ever. At the time, io was marketed as a new company that would merge with OpenAI to create a family of AI devices. Since then, the company has been embroiled in a messy trademark infringement lawsuit that's likely revealed more than OpenAI would have liked about its devices. iyO claims that OpenAI and io executives met with iyO leaders and tested the company's AI audio technology before the acquisition was announced.
The iyO lawsuit yanked back the curtain. Its claims of rushed research and meetings paint a picture starkly at odds with io’s intended minimalist mystique. Dropping the name solves a legal problem.
It’s a practical move. But it also strips away a crucial layer of marketing borrowed cool. What remains is the hardware team from that $6.5 billion purchase.
They have everything to prove now, and no fancy label to hide behind.
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Common Questions Answered
How much did OpenAI pay for Jony Ive's startup, and what was the strategic goal of the acquisition?
OpenAI acquired io for $6.5 billion in an all-stock deal, with the primary goal of creating a new generation of AI-powered consumer devices. The acquisition brings together about 55 hardware engineers and designers, including key Apple alumni, to develop AI hardware that fundamentally rethinks how people interact with technology.
Why did OpenAI have to rebrand the io startup after the acquisition?
OpenAI was forced to rebrand due to a trademark lawsuit from Iyo, a hearing device startup. The original blog post announcing the acquisition was scrubbed from OpenAI's website, and the company carefully began referring to the startup as io Products Inc. to avoid further legal complications.
What is the relationship between Jony Ive and OpenAI following the acquisition?
Jony Ive and his design firm LoveFrom remain independent while assuming deep design and creative responsibilities across OpenAI. The partnership aims to create a new family of AI-powered devices that move beyond traditional smartphone and PC form factors, with Ive describing this moment as the most meaningful point in his career.
Further Reading
- Apple design guru Jony Ive joins OpenAI in $6.5 billion hardware deal — Axios
- A letter from Sam & Jony — OpenAI
- OpenAI's billion-dollar shopping spree: Inside its 2025 acquisition strategy playbook — ET Edge Insights
- Big Tech's $100B AI Acquisition Spree Intensifies — M&A Alerts
- Sam & Jony introduce io (OpenAI buys LoveForm for $6.4 billion, May 21, 2025) — OpenAI Community
