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
Why does the branding shift matter now? Earlier this year OpenAI revealed a $6.5 billion purchase of Jony Ive’s secretive consumer‑hardware subsidiary, the biggest deal the AI lab has ever struck. The deal was introduced under the name “io,” a fresh label meant to signal a joint venture that would blend Ive’s design pedigree with OpenAI’s machine‑learning chops.
Since that announcement, the newly minted unit has been quietly rebranded, its original moniker fading from press releases and product mock‑ups. The change hints at a deeper integration—or perhaps a strategic retreat from the hype of a separate consumer brand. Here’s the thing: the removal of “io” raises questions about how OpenAI plans to roll out physical AI products, and whether the partnership will live up to the lofty promises made at launch.
The following statement puts the timeline and scale of the acquisition into focus.
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.
OpenAI’s recent court filing makes clear that the company will not brand its upcoming AI hardware as “io,” “IYO,” or any variant thereof. The decision follows a trademark infringement suit brought by audio‑device startup iyO after OpenAI’s $6.5 billion purchase of Jony Ive’s secretive hardware unit earlier this year. Peter Welinder, OpenAI’s vice president and general manager, said the firm reviewed its naming strategy and opted to drop the moniker entirely.
When the acquisition was announced in May 2025, the startup was presented as a new entity that would merge with OpenAI to create a family of AI devices. Since then, the company has faced legal pressure over the name, prompting the recent filing. Whether the rebranding will affect the timeline or market perception of the hardware line remains unclear, as OpenAI has not detailed alternative naming plans.
The move underscores the practical challenges of integrating high‑profile design assets into a rapidly expanding AI portfolio.
Further Reading
- Apple design guru Jony Ive joins OpenAI in $6.5 billion hardware deal - Axios
- OpenAI's billion-dollar shopping spree: Inside its 2025 acquisition strategy playbook - ET Edge Insights
- Sam & Jony introduce io (OpenAI buys LoveForm for $6.4 billion, May 21, 2025) - OpenAI Community
- Big Tech's $100B AI Acquisition Spree Intensifies - M&A Alerts
- A letter from Sam & Jony - OpenAI
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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.