OpenAI’s $6.5B Deal Hits a Bump Over ‘io’ Name Dispute

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OpenAI’s $6.5 Billion Deal Hits a Bump Over ‘io’ Name Dispute

Written by Aaron S.,

Editor-In-Chief

Last Updated: June 23, 2025

Key Takeaways

OpenAI pulled videos and web content after a judge blocked use of the name "io" due to a trademark dispute with startup iyO;
The court has not ruled definitively but agreed there could be confusion between "io" and "iyO";
Despite the order, OpenAI said its $6.5 billion acquisition of Jony Ive’s io hardware startup is still moving forward.

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OpenAI has taken down online content related to its planned partnership with Jony Ive’s hardware company, io, after a court stepped in due to a trademark dispute.

The issue came up after a startup named iyO, which is building earbuds powered by artificial intelligence (AI), claimed that the name "io" was too close to its own.

A judge agreed there might be confusion and issued a restraining order, which stops OpenAI from using the name “io" in any promotional materials for now.

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However, the judge did not make a final decision but said the argument had enough weight to stop OpenAI’s use of the name “io” for now.

As a result, OpenAI removed a video from its website and YouTube channel that featured CEO Sam Altman and Ive discussing their collaboration. The video was intended to showcase the friendship between the two and showcase their shared vision for a new type of hardware designed with AI in mind.

In a June 22 post on X, OpenAI said:

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 legal issue, OpenAI said the deal itself has not been affected. The company still plans to proceed with the acquisition of io, valued at around $6.5 billion.

On June 5, OpenAI attempted to dismiss a lawsuit filed by The New York Times, which would require the company to retain copies of all user interactions. What was OpenAI’s response? Read the full story.