Remember back in May 2025? It felt like the industry shifted on its axis when OpenAI dropped a staggering $6.5 billion to acquire Jony Ive’s enigmatic startup, “io.” The promise was huge: a revolution in how we interact with AI, designed by the guy who practically invented the modern tech aesthetic. Well, fast forward to today, and that vision has hit a wall. Actually, make that two walls.
As reported by WIRED, OpenAI has officially waved the white flag on the “io” brand name. In a court filing that landed this Monday, the company confirmed they are walking away from the branding entirely. But if losing the name wasn’t enough of a Monday morning headache, they also quietly slipped in a detail that stings a whole lot more than a logo swap: the hardware itself is delayed.
We aren’t going to see this device in 2026. We’re looking at February 2027 at the absolute earliest. So, let’s dig into what is actually going on behind the curtain.
Why Money Can’t Always Buy You Two Vowels
It turns out, you can’t just pick two vowels and call it a day, even if you have billions of dollars sitting in the bank. OpenAI has been tangled up in a pretty messy trademark infringement lawsuit filed last year by an audio startup called “iyO.”
While the visual difference might seem obvious to a graphic designer, phonetically? “io” and “iyO” are basically twins. To make matters stickier, the audio startup claimed that OpenAI and the io team actually met with them to test their tech before the acquisition, which adds a hefty layer of corporate drama to the mix.
Peter Welinder, OpenAI’s VP, cut straight to the chase in the filing. The company has reviewed its strategy and decided “not to use the name ‘io’ (or ‘IYO,’ or any capitalization of either) in connection with the naming, advertising, marketing, or sale” of their products.
Honestly? It’s probably for the best. “io” was clean, sure, but it’s also the domain extension for half the tech startups in Silicon Valley. A fresh start might help them define exactly what this thing is without the baggage.
The “Hardware is Hard” Reality Check
The bigger story here isn’t the name; it’s the timeline. Until now, the roadmap suggested we’d see the fruits of the Jony Ive collaboration in the second half of this year, 2026.
That dream is officially dead. Welinder’s filing notes that the company now has a “better understanding of the timeline,” which is polite corporate-speak for “it’s taking way longer than we thought.” The first device won’t ship to customers before the end of February 2027.
“The prototype CEO Sam Altman mentioned… was not an in-ear device, nor a wearable device.”
— OpenAI Legal Filing
This delay isn’t shocking if you follow the industry—hardware is notoriously unforgiving. According to a CB Insights report analyzing startup post-mortems, product mistiming and “not the right team” (often linked to manufacturing hurdles) are among the top reasons hardware ventures fail. Even with Ive’s design pedigree, scaling a physical product from a prototype on a desk to millions of units is a logistical nightmare compared to shipping code.
Nature Abhors a Vacuum (And So Does Reddit)
When a company stays this secretive, the internet tends to fill the void with absolute nonsense. We saw this play out vividly over the weekend.
A viral Reddit thread claimed OpenAI had pulled a Super Bowl ad featuring actor Alexander Skarsgård wearing silver headphones and tapping a “reflective puck.” It sounded cool. It looked high-budget. And it was completely fake.
OpenAI spokesperson Lindsay McCallum had to step in and confirm the company had nothing to do with it. But the fact that even Reddit cofounder Alexis Ohanian was sharing it shows just how hungry people are for even a glimpse of this device.
So, What Is This Thing Actually Going To Be?
So, if it’s not headphones (despite the fake ad) and it’s not an “in-ear” device (according to the lawsuit filings), what exactly are we waiting for?
The current intel points to a screenless device that sits on your desk—a companion to your phone and laptop rather than a replacement. Think of it as an AI concierge that has a physical presence but doesn’t demand your visual attention.
It’s a massive gamble. The smart home market is crowded. Statista data projects the global smart home market volume to exceed $200 billion by 2028, but that’s dominated by utilities like security and lighting. A dedicated “AI brain” for your desk is a new category. Without a screen, the voice interface needs to be absolutely flawless.
For now, OpenAI has no packaging, no marketing materials, and no name for the device formerly known as io. All they have is a prototype, a lawsuit, and a new deadline: February 2027.
This article is sourced from various news outlets. Analysis and presentation represent our editorial perspective.
