^{OpenAI Co-Founder and CEO Sam Altman speaks at Snowflake Summit in San Francisco on June 2, 2025. | Justin Sullivan | Getty Images News | Getty Images}

Altman Breaks Silence on Iyo Lawsuit: “Silly, Disappointing, and Wrong”

OpenAI CEO Sam Altman has fired back publicly against a trademark lawsuit filed by hardware startup Iyo, calling the legal complaint “silly, disappointing, and wrong.” The legal spat stems from a deal OpenAI announced in May 2025, partnering with iconic Apple designer Jony Ive to create new AI-focused hardware under a company branded “io.”

Iyo, founded by Jason Rugolo, alleges that OpenAI’s use of the brand name “io” infringes on its trademark, claiming that the similarity is not only confusing but also damaging to its brand identity, which Rugolo says has taken years to build.

Legal Grounds: Trademark Infringement and Unfair Competition

The dispute escalated earlier this month when Iyo filed suit against OpenAI, Sam Altman, and Jony Ive, citing trademark infringement and unfair competition. According to court filings, Iyo argues that its name — stylized as "IyO" — is too close to “io,” and that the resulting confusion could irreparably harm its brand just as it prepares for a major product launch.

Iyo is currently accepting pre-orders for its flagship product, the Iyo One — a futuristic in-ear wearable device boasting 16 microphones designed to deliver a next-generation AI-driven audio experience.

In response, a judge issued a temporary restraining order (TRO) last week, barring OpenAI from using the “io” name in connection with its AI hardware efforts, pending further legal proceedings. As a result, OpenAI has taken down the original blog post announcing the collaboration with Ive.

A placeholder now reads:

“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.”

Altman Reveals Emails Suggesting Deal Talks with Iyo

In an effort to challenge the narrative, Altman shared screenshots of emails from Rugolo on X (formerly Twitter), which suggest that Rugolo had previously reached out to OpenAI seeking a buyout, investment, or IP partnership. “Jason was quite persistent in his efforts to get us to acquire or fund Iyo,” Altman wrote.

According to Altman, the legal complaint contradicts those private efforts to partner. “He’s now suing us over a name,” Altman said, suggesting that the lawsuit is opportunistic rather than principled.

Rugolo Responds: “There Are 675 Other Two-Letter Names”

Although Rugolo did not respond to direct media inquiries, he posted on X that,

“There are 675 other two-letter names they can choose that aren’t ours.”
He maintains that OpenAI’s use of “io” is confusing to consumers and unjustified given the brand overlap.

Mounting Legal Challenges for OpenAI

This lawsuit adds to a growing list of legal battles OpenAI is now facing:

• The New York Times is currently suing OpenAI for copyright infringement, alleging its news content was used without authorization to train ChatGPT.
• Elon Musk, who co-founded OpenAI in 2015, is suing the company for breach of contract, accusing it of straying from its nonprofit roots.
• Now, Iyo v. OpenAI adds trademark and brand identity concerns to the pile.

The legal pressure coincides with OpenAI’s attempts to restructure and scale aggressively, attracting more capital to fund its growing suite of AI models and hardware products. The Jony Ive-led “io” project — reportedly valued at around $6.4 billion — is seen as a strategic entry point into consumer hardware, though specific product details remain under wraps. Altman told The Wall Street Journal that the first device is “not a smartphone.”

Final Thoughts: Innovation Meets Legal Roadblocks

As OpenAI pushes deeper into AI-powered consumer hardware, legal entanglements are becoming an increasingly visible challenge. While Altman frames the Iyo lawsuit as a distraction from innovation, Rugolo and his team see it as a battle to protect their identity in a competitive space.

In one of his final posts on the matter, Altman remarked,

“I wish the Iyo team the best building great products. The world certainly needs more of that — and fewer lawsuits.”