OpenAI and Jony Ive's $6.5 Billion Deal Faces Legal Hurdles Amid Trademark Dispute
June 22, 2025
OpenAI's partnership with Jony Ive, announced in May 2025, was aimed at developing voice-activated AI devices, with Ive leading the creative direction.
Despite recent content removals, OpenAI confirmed that its nearly $6.5 billion acquisition deal with Ive's company, IO Products, is still progressing.
Bloomberg's Mark Gurman reports that the acquisition deal remains on track and has not been dissolved, despite the ongoing legal issues.
The legal action stems from a trademark infringement lawsuit filed by Iyo, a hearing device startup, against OpenAI, Sam Altman, and Jony Ive, claiming similarity in their names.
OpenAI spokesperson Kayla Wood stated that the removal of promotional content is a temporary measure due to a court order related to the trademark complaint.
As part of the court order, OpenAI has removed mentions of its partnership with Jony Ive, including a video showcasing their collaboration.
The judge indicated that the promotional material could cause consumer confusion, which led to the order to pull the video.
OpenAI has expressed disagreement with Iyo's complaint and is currently exploring its legal options moving forward.
The future branding of the final product under the 'io' name is uncertain due to the ongoing trademark dispute.
Central to the trademark dispute is the iyO ONE, an ear-worn device that uses voice control for audio applications.
While the promotional video is still accessible on the social media platform X, the OpenAI webpage for the video now shows a 404 error with a haiku as a placeholder.
Jony Ive's representatives have stated they will vigorously contest the lawsuit, which they consider baseless.
Summary based on 5 sources
Get a daily email with more Tech stories
Sources

Business Insider • Jun 22, 2025
OpenAI scrubs news of Jony Ive deal amid trademark dispute
The Verge • Jun 22, 2025
OpenAI and Jony Ive’s ‘io’ brand has vanished, but their AI hardware deal remains
TechCrunch • Jun 22, 2025
OpenAI pulls promotional materials around Jony Ive deal
9to5Mac • Jun 22, 2025
OpenAI removes ‘io’ branding mentions over trademark lawsuit - 9to5Mac