OpenAI and IO's AI Device: Early Work Revealed in Court Filings

OpenAI and Jony Ive’s io: New Insights into AI Hardware Development

Recently submitted legal documents from legal counsel representing OpenAI and Jony Ive’s io have disclosed further information regarding the companies’ collaborative endeavors to develop a widely accessible AI-powered hardware device.

Trademark Dispute with iyO

These filings are connected to a trademark dispute lawsuit initiated this month by iyO, a hardware startup backed by Google, specializing in custom-molded earpieces designed for connectivity with other devices.

In response to a court order related to the lawsuit, OpenAI temporarily removed promotional content pertaining to its $6.5 billion acquisition of Jony Ive’s io startup. OpenAI maintains it is actively contesting iyO’s claims of trademark infringement.

Extensive Hardware Research

According to filings within iyO’s lawsuit, OpenAI executives and former Apple personnel now employed at io have been conducting thorough research into in-ear hardware devices for the past year.

A filing dated June 12th indicates that the companies acquired at least 30 headphone sets from various manufacturers to assess the current market landscape.

Emails revealed in the case demonstrate that OpenAI and io leaders also engaged in meetings with iyO’s leadership, showcasing their in-ear technology.

Beyond Headphones: Exploring Diverse Form Factors

Despite the focus on in-ear devices, OpenAI’s initial hardware offering in partnership with io may not necessarily be a pair of headphones.

Tang Tan, io’s co-founder and chief hardware officer, and a veteran Apple executive, stated in a court declaration that the prototype showcased in io’s launch video “is neither an in-ear device, nor a wearable device.”

Tan further clarified that the prototype’s design remains unfinalized and that the product is at least one year away from public availability or sales.

A "Third Device" for Consumers

The precise form factor of OpenAI and io’s first hardware device has remained largely undisclosed.

Sam Altman, OpenAI’s CEO, described the startup’s ambition to create a “family” of AI devices with varied functionalities in io’s launch video.

Jony Ive expressed that io’s initial prototype “completely captured” his imagination.

Previously, Altman informed OpenAI employees during a meeting that the completed prototype would be compact enough to fit in a pocket or rest on a desk, as reported by the Wall Street Journal.

He envisioned the device as being fully aware of its surroundings and functioning as a “third device” for consumers, complementing their smartphones and laptops.

Expanding the Scope of Device Exploration

Altman affirmed in a June 12th court declaration that the collaboration’s objective was to develop products that transcend conventional designs and interfaces.

Legal representatives for OpenAI stated in a filing that the company has investigated a broad spectrum of devices, encompassing desktop-based, mobile, wireless, wired, wearable, and portable options.

Competition in the AI Hardware Space

While smart glasses are gaining traction as a leading candidate for AI-enabled devices, with companies like Meta and Google actively pursuing their development, several firms are also investigating AI-powered headphones.

Apple is reportedly developing AirPods equipped with cameras to enhance AI features by gathering environmental data.

Meetings and Evaluations with iyO

In recent months, OpenAI and io executives have conducted significant research into in-ear products.

An emailed invitation revealed in the case details a May 1st meeting between Peter Welinder, OpenAI’s VP of Product, and Tang Tan with Jason Rugolo, iyO’s CEO, to gain insights into iyO’s in-ear product.

The meeting occurred at io’s office in Jackson Square, San Francisco, where Ive has acquired multiple buildings for LoveFrom and io’s operations.

Follow-up emails indicate that Welinder and Tan were dissatisfied with iyO’s custom-fit earpiece, which experienced repeated failures during demonstrations.

Strategic Considerations and IP Protection

Tan explained in his declaration that he attended the meeting with Rugolo as a professional courtesy to his mentor, Steve Zadesky, a long-standing Apple executive.

He also stated that he took measures to avoid acquiring excessive knowledge of iyO’s intellectual property, including requesting legal review of materials beforehand.

Exploring Ear Scan Data

OpenAI and io personnel appeared interested in learning from iyO’s partners.

iyO utilized The Ear Project, an ear-scanning company, to create detailed maps of individuals’ ears for customized headset fitting.

In an email revealed in the case, Marwan Rammah, a former Apple engineer now at io, suggested to Tan that acquiring a large database of three-dimensional ear scans from The Ear Project could provide a “helpful starting point on ergonomics.”

It remains unclear whether any such transaction occurred.

Unsuccessful Collaboration Attempts

According to the emails, Rugolo repeatedly attempted to establish a closer relationship between iyO, io, and OpenAI, but these efforts were largely unsuccessful.

He proposed launching iyO’s device as an early “developer kit” for OpenAI’s final AI device, suggested OpenAI invest in iyO, and even offered to sell his entire company for $200 million.

However, Tan stated in his declaration that he rejected these proposals.

io’s Focus and Future Outlook

Evans Hankey, io’s co-founder and chief product officer, and a former Apple executive, declared to the court that io is not currently developing a “custom-molded earpiece product.”

OpenAI’s first hardware device is projected to be more than a year away from release and may not be an in-ear product.

Based on the company’s statements in the lawsuit, it is also exploring alternative form factors.