OpenAI and Jony Ive’s io Reveal Fresh Details Amid Trademark Dispute

Legal documents filed this month by OpenAI and Jony Ive’s io unveil new insights into their pursuit of a groundbreaking mass-market AI hardware device.

Trademark Dispute: The Heart of the Matter

These filings stem from a trademark lawsuit initiated by iyO, a Google-backed startup focusing on custom-molded earpieces that integrate with other devices. Recently, OpenAI withdrew promotional content related to its $6.5 billion acquisition of Jony Ive’s io to align with a court order tied to the case. OpenAI is actively contesting iyO’s claims of trademark infringement.

Research into In-Ear Hardware Advances

In the past year, OpenAI executives, alongside former Apple leaders at io, have carried out extensive research into in-ear hardware. According to recent court filings, they procured at least 30 headphone sets from various manufacturers to assess the current market landscape. In emails disclosed during the lawsuit, it was noted that OpenAI and io representatives also met with iyO’s leadership to demonstrate their in-ear technology.

First Device: Not Just Headphones?

Interestingly, the initial product from OpenAI and io may not be headphones at all.

Tang Tan, co-founder of io and former Apple executive, stated in a court declaration that the prototype mentioned by OpenAI CEO Sam Altman in io’s launch video “is neither an in-ear device nor wearable.” He emphasized that the design is still in development and won’t be ready for at least another year.

A Mysterious Form Factor Ahead

The exact shape of OpenAI and io’s first hardware remains shrouded in secrecy. Altman hinted during io’s launch that the startup aims to produce a “family” of AI devices featuring various functionalities, while Ive expressed that the initial prototype “completely captured” his imagination.

Altman previously informed OpenAI staff that the forthcoming prototype would be compact enough to fit into a pocket or reside on a desk, as reported by the Wall Street Journal. He stated that the device is designed to be fully aware of its environment, serving as a “third device” for users alongside their smartphones and laptops.

Aiming for Innovative Collaborations

“Our goal with this collaboration is, and has always been, to develop products that transcend traditional interfaces,” Altman asserted in a court declaration dated June 12.

OpenAI’s legal team also indicated in a filing that the company is evaluating a diverse array of device types, including desktop-based, mobile, wired, wireless, wearable, and portable options.

The Race for AI-Enabled Devices

While smart glasses are currently leading the charge in AI-enabled devices, with Meta and Google vying for market dominance, other firms are also investigating AI-capable headphones. Reports suggest that Apple is exploring a pair of AirPods equipped with cameras to enhance AI functionalities by collecting environmental data.

Research and Development Insights

OpenAI and io have conducted substantial research into in-ear products recently.

On May 1, OpenAI’s VP of Product, Peter Welinder, and Tang met with iyO’s CEO, Jason Rugolo, to gain insights into iyO’s in-ear product. This meeting took place at io’s office in Jackson Square, a district in San Francisco where Ive has acquired several buildings for his ventures.

During this encounter, Welinder and Tan tested iyO’s custom-fit earpiece but were disappointed to find it malfunctioned during demonstrations, as revealed in subsequent emails.

Striving for Collaborative Synergy

Tan’s declaration mentions he met with Rugolo at the suggestion of his mentor, former Apple executive Steve Zadesky, indicating a desire to tread carefully around iyO’s intellectual property by having his lawyers review relevant materials beforehand.

Despite that, it appears OpenAI and io were keen to glean insights from an iyO partner. iyO employed a specialist from The Ear Project to visit locations to map ear contours for their custom in-ear headsets.

In one email exchange, Marwan Rammah, a former Apple engineer now at io, suggested that acquiring a comprehensive database of 3D ear scans from The Ear Project could significantly boost their ergonomics initiatives. The outcome of such a deal remains unclear.

Business Opportunities Explored, but Not Solidified

Rugolo made multiple attempts to establish a deeper partnership with io and OpenAI, pitching concepts like launching iyO’s device as an early “developer kit” for OpenAI’s ultimate AI product. He even proposed selling his entire company for $200 million. However, Tan declined these offers, according to the filings.

Evans Hankey, another former Apple executive and now io co-founder and chief product officer, asserted in a court declaration that io is not currently pursuing a custom-molded earpiece product.

Future Prospects for OpenAI and io

It appears that OpenAI is still over a year away from launching its inaugural hardware device, which may not even be an in-ear product. Based on the information disclosed during the lawsuit, the company seems to be exploring a variety of potential form factors.