Court Documents Reveal OpenAI and Jony Ive’s Quiet Work on a New AI Device

New court filings have brought to light some surprising details about a secretive project between OpenAI and Jony Ive’s design firm, LoveFrom and io. Their goal? To create a new kind of AI-powered device that could one day end up in everyone’s pocket or on their desk.

These details came out during a lawsuit filed by iyO, a Google-backed startup that’s building custom-molded earpieces. They’re accusing OpenAI and io of stepping on their trademark. In response, OpenAI has pulled down some promotional content about its $6.5 billion partnership with Ive’s team—at least for now. OpenAI is standing firm, saying the lawsuit is based on false claims.

Over the past year, according to documents shared with the court, OpenAI and former Apple engineers now working at io have been diving deep into the world of in-ear tech. They reportedly bought around 30 types of headphones just to get a feel for what’s currently out there. More recently, leaders from both companies even sat down with iyO’s team to check out their product firsthand.

But here’s where it gets interesting—despite all this exploration, the first device from OpenAI and io might not be a pair of earbuds at all.

Tang Tan, a key Apple alum and now io’s Chief Hardware Officer, said in a court statement that the prototype Sam Altman mentioned during io’s launch isn’t something you wear in your ears—or even on your body. He made it clear: the design is still in the works, and it’ll be at least a year before anyone sees it in stores.

For now, the shape and function of the new device remain a mystery. Altman only teased that they’re creating a family of AI tools—devices that are smart, aware, and can work alongside the tech we already use every day. Jony Ive called the first prototype something that “completely captured” his imagination.

According to a report from The Wall Street Journal, Altman once told OpenAI staff that this new gadget would be something portable—something that lives on your desk or fits in your pocket. It wouldn’t just sit there; it would know what’s going on around it, acting as a kind of third companion alongside your phone and laptop.

“Our goal from the beginning has been to create something that feels different—not just another screen or keyboard,” Altman said in a legal declaration filed June 12.

The documents also reveal that OpenAI explored all kinds of hardware ideas: things that are wearable and portable, things that live on desks, devices that connect wirelessly—or even with wires.

While companies like Meta and Google are focused on smart glasses, and Apple is rumored to be building AI-powered AirPods with cameras, OpenAI and io have been doing their own homework—especially around in-ear devices.

One moment that stands out in the court records happened back on May 1. OpenAI’s VP of Product, Peter Welinder, and Tang Tan met with iyO’s CEO Jason Rugolo at io’s offices in San Francisco. The vibe was curious but cautious. During the meeting, they tried out iyO’s earpieces—but things didn’t go smoothly. The devices kept failing during the demo, and according to follow-up emails, the OpenAI team left unimpressed.

Tan later said he only agreed to the meeting out of respect for a former mentor, longtime Apple executive Steve Zadesky. He also claimed he was careful not to get too close to iyO’s intellectual property—he even asked his legal team to review any sensitive material before he looked at it.

Still, some at OpenAI and io saw potential value in what iyO was doing. iyO had been working with The Ear Project, a specialist company that 3D-scans people’s ears for a perfect fit. In one internal email, former Apple engineer Marwan Rammah, now at io, suggested that buying those ear scans could help jumpstart their own ergonomic designs. It’s not clear whether that purchase ever happened.

Meanwhile, Rugolo kept trying to build a bridge. He offered to let OpenAI use iyO’s tech as a developer tool. He pitched investment deals. At one point, he even offered to sell the whole company for $200 million. But according to Tan, io wasn’t interested.

Evans Hankey, another Apple alum and io’s Chief Product Officer, made it clear in a court statement: io isn’t building a custom-molded earpiece.

So where does this leave us? OpenAI’s first hardware product is still at least a year away, and if the legal filings are any guide, it probably won’t be something you stick in your ear. Whatever it turns out to be, though, it’s clear the team is dreaming bigger than just another wearable.