Temporary injunction forces Sam Altman’s hardware play to vanish from the web while trademark fight brews.
OpenAI has quietly removed every web page, blog post, and YouTube video trumpeting its recently announced hardware venture io after a federal judge issued a temporary restraining order in a trademark suit brought by iyO, an audio‑computing start‑up spun out of Google X. The order, handed down late Friday by U.S. District Judge Trina Thompson, bars OpenAI, CEO Sam Altman, and design partner Jony Ive from marketing any product or service bearing the “io” name—or anything “confusingly similar”—until an October hearing.
How a $6.5 Billion Deal Landed in Court
OpenAI revealed the acquisition of Ive’s stealth hardware studio in May, valuing the deal at $6.5 billion and positioning io as its springboard into AI‑native consumer devices. But iyO—pronounced “eye‑oh”—claims Altman and Ive saw confidential demos of its custom‑molded “audio computers” in 2022 and are now trading on a nearly identical brand. The start‑up argues the overlap will sow marketplace confusion and erode five years of goodwill built under its registered mark.
A Swift, Public Takedown
Within hours of the injunction, OpenAI replaced the io homepage with a terse legal notice, scrubbed promotional videos, and pulled press releases from its newsroom. The company said it disagrees with the complaint but will comply pending further review—an uncharacteristic public retreat from a firm that usually projects inevitability.
iyO’s Case—and What Comes Next
Trademark disputes hinge on the likelihood of consumer confusion, and the judge’s early injunction signals the court sees iyO’s claim as credible. OpenAI must now decide whether to rebrand its hardware push, negotiate a settlement, or fight the case at trial; any path risks delaying product timelines deep into 2026.
Bigger Stakes for AI Hardware
Beyond naming rights, the skirmish underscores the high‑stakes race to own the next interface for AI—always‑on devices that blend voice, vision, and ambient computing. If OpenAI loses the io label, it could surrender a first‑mover narrative as multiple companies jockey to define the category.
