IO vs. IO: OpenAI, Google, and the Weirdest AI Hardware Lawsuit Yet
05:49 Share

Hey everyone, it's Eli and welcome back to the pod. Today we're diving into what might be the most ridiculous, scandalous, and straight up bizarre lawsuit in the AI world so far. A lawsuit that feels like a Silicon Valley episode, except it's real and it involves Google, OpenAI, Johnny Ive, and...

Two companies with the same name. Yep, you heard that right. This is the IO versus IO lawsuit, and it's about to get messy. So let's set the stage. On one side, we've got a Google-backed startup called IO, just IO, quiet, well-funded, and supposedly already shipping product. On the other side, we've got another company also called IO, but this one is backed by OpenAI and led by none other than JT.

Johnny Ive, the design legend behind Apple's most iconic hardware and Samsung's

Sam Altman, the poster child of AI disruption. Now, because this is confusing as hell, I'm going to call the original company IO and the Altman I version Altman IO for the sake of clarity. Altman IO was just acquired by OpenAI for $6.5 billion. Yep, $6.5 billion. And yet just days after the acquisition was announced, they were hit with a trademark infringement lawsuit by the original company.

So what's going on here? According to the lawsuit, this isn't just about the name. The accusations are way more serious. Allegedly, Sam Altman and Johnny Ive or people representing them met with the original I.O. multiple times, first in 2022, then again in 2025.

The meetings were supposedly framed as investment opportunities, demo sessions, and exploratory talks. But after each meeting, Altman and company said,

thanks, but no thanks. But here's where it gets wild. While they were turning down deals publicly, they were allegedly buying I.O.'s hardware, requesting design files, and keeping tabs on their progress. Then suddenly, boom, OpenAI announces it's building its own voice-controlled AI hardware with Johnny Ive, and they're calling it I.O. You can't make this stuff up. The lawsuit claims that Altman I.O. essentially lifted the...

name, the concept, and even elements of the product after years of quiet observation. And then to top it off, Altman allegedly threatened to sue them to force them to give up the name IO. Let that sink in. He allegedly used the name IO after they had it, then tried to intimidate them out of using it. The whole thing feels like a Silicon Valley fever dream. Now, let's talk about what this original IO company is.

According to their site and funding records, they've raised about $62 million. They have a registered trademark and they say they've got 20,000 units of their product ready to ship. Their concept, a revolutionary new computer that doesn't need a screen. You interact with it purely through voice. Just speak to it.

it runs apps now if that sounds familiar it's because it is the rabbit r1 tried it the humane ai pin tried it and both kind of flopped these screenless ai first hardware devices are promising in theory but no one's cracked the formula yet so now we've got two ios with basically the same pitch screenless voice controlled ai hardware one backed by google and already shipping the other backed by openai and johnny i with a blank slate and a six billion dollar war chest and both

are headed for court. This lawsuit is more than just corporate drama. It's also a proxy war between Google and OpenAI, two of the most powerful players in the AI race. Google has its fingerprints all over the original I/O. OpenAI literally just absorbed all

Altman IO into its growing empire. And now the gloves are off. There are so many layers here. There's the legal angle who actually owns the IO brand. There's the ethical angle. Did Altman and I've act in bad faith by meeting with this company?

repeatedly and then building something suspiciously similar and then there's the product question does anyone actually want a device like this let's be honest the rabbit r1 got memed to death the humane pin is basically a tick-tock cautionary tale it's entirely possible

that neither IO wins because no one wants what they're selling. But that doesn't make this lawsuit any less important. If IO, the original, wins this case, it could force OpenAI to rebrand their entire hardware project, and that's a huge blow to momentum, especially since they haven't even released a product yet.

If Altman IO wins or if they settle out quietly, it could signal that big AI can do whatever it wants, buy whoever it wants, and bulldoze through trademarks with enough cash and confidence. And I haven't even touched on what this does to Jotty Ives' reputation. This is the guy who gave the iPhone, iPad, and MacBook their identity. He was Apple's design soul, and now he's being accused of lifting a startup's concept and design files under false pretenses.

Whether it's true or not, it's a weird look for someone with that kind of legacy. At the end of the day, this whole I.O. versus I.O. thing might come down to the most basic legal principle of all. Who used the name first and who can prove it? The original I.O. has the paperwork, the product, the trademark,

Altman.io has buzz, mystery, and open AI money. The story is not over yet, but I'll say this. If the goal was to create the most unnecessarily confusing product name war in AI history, congratulations to everyone involved. That's it for today's episode. I'm Eli, and if you enjoyed this wild ride through tech legal drama, send this episode to a friend who loves chaos.

and hit follow so you don't miss what happens next. Until then, may your trademarks be protected and your hardware actually useful. Catch you next time.