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OpenAI vs Alphabet Spinout: Will a Trademark Dispute Over ‘io’ Stall the $6.5 Billion Jony Ive Deal?
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Why Did OpenAI Pull Its Jony Ive Partnership Video
OpenAI recently removed a high-profile video and blog post that celebrated its partnership with famed Apple designer Jony Ive and the $6.5 billion acquisition of his hardware startup, io.
This sudden disappearance sparked questions about whether the deal or Ive’s role leading hardware design at OpenAI was in trouble.
However, insiders clarify the removal stems from legal challenges rather than a collapse in the deal.
Court Order Forces OpenAI To Take Down Promotional Materials
The root cause behind the content’s removal is a trademark dispute.
A hearing device startup called iyO, originating from Alphabet’s X “moonshot factory,” filed a complaint over OpenAI’s use of the name “io.”
While spelled with an additional 'y', "iyO" is pronounced identically to "io."
According to Bloomberg’s Mark Gurman, a judge issued a restraining order restricting OpenAI from using the name io publicly.
OpenAI confirmed this, stating,
“This page is temporarily down due to a court order following a trademark complaint from iyO about our use of the name ‘io.’ We don’t agree with the complaint and are reviewing our options.”
Despite this legal hurdle, OpenAI emphasised the acquisition itself remains on track and unaffected by the court case.
Jony Ive’s team also dismissed the complaint as “utterly baseless” and promised to contest it vigorously.
Trademark Tussle Over The Name ‘io’
At the centre of the legal challenge is the name “io”—a sleek moniker that both OpenAI’s new hardware unit and Alphabet-backed iyO want to use.
A judge overseeing the trademark lawsuit appeared open to iyO’s argument that OpenAI’s promotional campaign may already be creating confusion among consumers.
According to Bloomberg Law, the temporary restraining order restricts OpenAI from using “io” in public-facing content while the case proceeds.
Despite the order, the video can still be found on X (formerly Twitter), though it has vanished from YouTube and OpenAI’s official site.
OpenAI And Ive Stand Firm On Future Plans
While the branding is now under legal review, the core of the deal appears unaffected.
According to Bloomberg’s Mark Gurman,
“The Jony Ive and OpenAI deal is on track and has NOT dissolved or anything of the sort, I’m told.”
OpenAI also confirmed the partnership remains in motion, stating that the trademark dispute “does not affect the deal with io.”
OpenAI had previously said the io team would be integrated into its San Francisco research and engineering divisions to co-develop AI-powered consumer hardware.
Whether that product ever launches under the “io” name is now unclear.
What’s In A Name When Billions Are At Stake?
This dispute is a reminder that in the race to build the future of AI hardware, branding is not just aesthetic—it’s legal, strategic, and high-stakes.
With $6.5 billion and two of tech’s most recognisable figures behind the effort, the name on the box might seem secondary—but it could shape consumer perception, investor confidence, and regulatory risk.
When innovation meets identity, the smallest detail can derail the biggest vision.
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