Legal documents filed earlier this month have unveiled new details about OpenAI’s closely watched hardware initiative in partnership with Jony Ive’s startup, io. The information surfaced as part of a trademark infringement lawsuit initiated by iyO, a hardware firm backed by Google focused on developing custom-made earpieces for connected devices. As the suit continues, OpenAI has temporarily withdrawn certain promotional material related to its recent $6.5 billion acquisition of io, in compliance with a judicial order.
Court filings reveal that OpenAI executives, alongside former Apple engineers now employed at io, have extensively explored the potential for in-ear hardware products over the past year. Specifically, the companies reportedly acquired more than thirty different headphone sets from various manufacturers to evaluate existing market offerings. Additionally, emails disclosed in the lawsuit detail recent interactions between the executives at OpenAI, io, and iyO—indicating intentions at some point to explore in-ear technology further.
However, despite extensive internal exploration, it appears that OpenAI and io’s first commercial product may not fall within the wearable or ear-based category at all. Tang Tan, a former senior figure at Apple who co-founded io and now serves as its chief hardware officer, stated in submitted declarations that the device’s prototype is neither wearable nor designed for in-ear use. According to Tan, the industrial design remains incomplete, with consumer availability likely more than a year away.
Public statements by OpenAI CEO Sam Altman reinforced these claims. While previously Altman has referenced plans to produce multiple devices with differing capabilities, he specifically described the first prototype as something compact enough to fit in a user’s pocket or comfortably rest upon a desk. The device, Altman has said, would function as a complementary third device—next to smartphones and laptops—capable of actively sensing its immediate environment to provide enhanced user awareness and productivity.
Public interest has naturally focused on AI hardware advancements in wearable form factors, notably smart glasses, which companies like Meta and Google are actively pursuing. Yet the idea of AI-driven portable or desktop devices presents opportunities that OpenAI is clearly interested in leveraging. According to Altman’s statement recorded in court records, the fundamental aim of OpenAI’s collaboration with io is producing innovative products that “go beyond traditional products and interfaces.”
Despite courtroom disclosures of significant research into custom-molded ear products—including potential interactions with third-party ear-scanning providers—members of io’s senior management have outright denied working toward a dedicated in-ear device of their own. Evans Hankey, another Apple veteran and current product head at io, explicitly stated that io has not been developing any such custom-fit earpiece.
Further courtroom revelations disclose various proposals made by iyO’s CEO, Jason Rugolo, to OpenAI and io executives, including collaboration opportunities, investment pitches, and even an outright sale offer of iyO for approximately $200 million—all of which were reportedly declined. Initial discussions and meetings reportedly took place partly as courtesies among professional acquaintances within Apple’s former leadership network.
For now, the precise shape and function of OpenAI and io’s anticipated product remain elusive to the public. Although considerable effort has gone toward exploring wearable designs, the companies explicitly stated through their representatives that their primary hardware solution will differ substantially. Altogether, court filings suggest OpenAI is actively pursuing several diverse device concepts—desktop-based, mobile, wireless, wired, portable, and possibly wearable—without clearly committing yet to a final form for its anticipated AI-powered consumer product.
