OpenAI has recently taken down promotional materials, including a much-discussed video, related to its significant partnership with legendary Apple designer Jony Ive and CEO Sam Altman's device startup, io. This removal stems from a legal challenge: a trademark dispute initiated by an AI hardware startup named iyO. Despite the visible removal of content, reports confirm that the underlying $6.5 billion deal between OpenAI and Ive's firm, LoveFrom, is reportedly still on track and has not dissolved, contrary to initial speculation.

The decision to pull the content, which notably featured CEO Sam Altman and Jony Ive and detailed their collaboration, was prompted by a court order. OpenAI confirmed this, stating that the announcement page was temporarily down “due to a court order following a trademark complaint from iyO about our use of the name ‘io.’” The company, however, expressed disagreement with the complaint and indicated it is “reviewing our options,” while emphasizing that the trademark issue does not affect the core deal with io, which involves Ive's firm leading creative direction and design at OpenAI, particularly for new consumer devices.

The plaintiff in this legal action, iyO, is an AI hardware startup that emerged from Alphabet's experimental “moonshot factory,” X. iyO filed a trademark lawsuit against OpenAI, io, Sam Altman, and Jony Ive on June 9, alleging trademark infringement. A key point of contention is the potential for consumer confusion arising from the similar-sounding names ‘io’ and ‘iyO’, a concern that a judge suggested she was open to during initial proceedings.

Further complicating the dispute is the nature of the products both entities are reportedly developing. iyO's first announced product, the iyO ONE, is described as an “ear-worn device that uses specialized microphones and bone-conducted sound to control audio-based applications with nothing more than the user's voice.” Coincidentally, the partnership between OpenAI and Ive's firm, io, is rumored to be focusing on a similarly screen-less, voice-activated AI device, although specific product details were not shared when their deal was initially announced. Altman had broadly stated that the partnership would shape the “future of AI.”

It has also been revealed that iyO had previously approached OpenAI earlier in the year regarding a potential collaboration and funding opportunity, an offer which OpenAI subsequently declined. As of now, while the promotional video for the OpenAI-io partnership has been removed from OpenAI's official channels and YouTube page, it reportedly remains viewable on platforms like X (formerly Twitter). The legal battle continues, with OpenAI maintaining its position against the trademark complaint while the acquisition and partnership with Jony Ive's venture proceeds as planned.