OpenAI hardware timeline reset after io brand abandonment

OpenAI has confirmed that its first consumer hardware device will not be shipped to customers before the end of February 2027 and that the company will not use the disputed “io” name for the product, according to court filings related to an ongoing trademark lawsuit. OpenAI’s vice-president and general manager, Peter Welinder, told the court that the company had reassessed its product-naming strategy and decided against any use of “io” or “IYO” in the branding, marketing or sale of its next-generation AI-enabled hardware. The disclosure shifts expectations for OpenAI’s hardware ambitions, keeping the debut of a product many in the technology industry have been watching closely at least a year away.

The litigation at the centre of these developments involves a trademark dispute with audio technology startup iyO. OpenAI acquired the hardware design firm io, co-founded by designer Jony Ive, in a multibillion-dollar deal and had anticipated adopting the “io” moniker for its devices. Judges have signalled concerns over the similarity between the two names and the likelihood of consumer confusion, prompting OpenAI to shelve its original branding plans. The fallout leaves the company free to pursue a new identity for its hardware line without the legal cloud that hung over the disputed brand.

While the company has acknowledged the need to clarify its timeline and branding, it has offered few details about the hardware itself. Speculation persists that the device, long cloaked in secrecy by OpenAI, will represent a “third core” computing platform alongside phones and laptops, designed to augment everyday digital interactions. Court documents suggest the first iteration will not be wearable or in-ear technology, but rather a screenless device intended to sit on a desk or in a pocket, capable of integrating with the user’s broader digital life. Some insiders have compared the concept to existing personal AI devices, though specifics on functions and features remain limited.

Industry observers note that the push into consumer hardware marks a strategic step for OpenAI, which has largely been known for its software-centric products such as the ChatGPT family. Collaboration with Ive, the former Apple design chief, had bolstered expectations that the hardware could emphasise elegant industrial design coupled with advanced artificial intelligence capabilities. However, the delay and rebranding underscore the challenges of entering markets where enterprise legacies and intellectual property considerations play significant roles. Analysts point out that successfully launching a broadly adopted AI device will require navigating not just technological hurdles but also intense competition from established players exploring similar territory.

OpenAI’s approach to hardware development has been shrouded in discretion, with the company offering only occasional glimpses of its vision. At various industry gatherings, company executives have alluded to the potential of dedicated AI devices to reshape how people interact with artificial intelligence, but have not tied those ambitions to concrete product timelines. The decision to push the earliest shipping date into early 2027 suggests a recalibration of expectations both within the company and among observers who had hoped for a launch event before the end of this year.

The legal dispute that triggered the rebranding dates back to last year, when iyO initiated proceedings to protect its trademark after OpenAI’s acquisition of io. The startup’s leadership argued that allowing OpenAI to proceed with the “io” name could dilute its brand identity and confuse customers in a nascent market for AI hardware products. A federal appeals court upheld a restraining order that constrained the use of the name, prompting OpenAI’s lawyers to conclude that abandoning the branding path was the most pragmatic course of action.