OpenAI's AI Hardware Loses 'io' Trademark Battle

OpenAI's pursuit of a new AI hardware product has encountered a significant hurdle following a recent court ruling that bars the company from using the trademark "io." This decision stems from an ongoing trademark dispute initiated by AI hardware startup iyO in June 2025, which claimed OpenAI's branding was confusingly similar to its own.

The Ninth Circuit Court of Appeals upheld a previous district court decision, granting a temporary restraining order. Consequently, OpenAI, along with key figures like Sam Altman and Jony Ive, is prohibited from using the "io" trademark on products deemed similar to those offered by iyO. While OpenAI had already removed "io" branding from its website in June, the court's ruling clarifies the limitations on future product marketing.

Despite the legal entanglements, OpenAI remains determined to challenge the dispute and has stated it is reviewing its options. The highly anticipated hardware device, rumored to be a screenless portable gadget, is still projected for release between late 2026 and 2027. The litigation, however, is expected to continue, potentially stretching into 2027 or 2028.