Written By Divya
Published By: Divya | Published: Jun 23, 2025, 11:01 AM (IST)
Just a few weeks ago, OpenAI announced it was acquiring IO Products, a hardware startup co-founded by former Apple design chief Jony Ive. The deal was worth a whopping $6.5 billion and signalled OpenAI’s first major move into AI hardware. But now, all mentions of that partnership, including videos, blog posts, and even webpages, have quietly disappeared, Bloomberg reported. Also Read: Reddit new rule: Users with bot-like behavior may need to prove they are human
Naturally, this raised several questions – Did the deal fall through? Is something wrong? Here’s what we know so far. Also Read: Google Lyria 3 Pro launched: How to create 3-minute AI music tracks in seconds
According to both OpenAI and Ive’s teams, the sudden removal has nothing to do with the deal falling apart. Instead, it’s tied to a trademark dispute. A company called Iyo Inc., which also works on AI-related tech, has filed a legal complaint over the use of the name “IO,” the report added. The issue is serious enough that a judge has ordered OpenAI to temporarily take down related content until the case is reviewed. Also Read: OpenAI shuts down Sora: What happens to your videos now
In fact, OpenAI even added a message to its announcement page saying, “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 the hiccup, OpenAI says the deal is still intact. Jony Ive will continue to lead the hardware design efforts, and OpenAI executive Peter Welinder will head the new division.
However, the AI giant hasn’t shared any information regarding the device and how it may look, but CEO Sam Altman suggests that it may ship within a year.
Why does this collaboration still matter? This isn’t just another startup acquisition. The partnership could lead to a completely new kind of smart device. Though we might not see updates until the trademark issue is sorted, both Altman and Ive appear committed to moving forward.