Introduction to OpenAI’s AI Hardware Device

Recent legal filings from OpenAI and Jony Ive’s io have shed new light on the companies’ efforts to develop a mass-market AI hardware device. The filings are part of a trademark dispute lawsuit filed by iyO, a Google-backed hardware startup that is developing custom-molded earpieces that connect to other devices.

Background on the Lawsuit

The lawsuit has led to OpenAI pulling promotional materials related to its $6.5 billion acquisition of Jony Ive’s io startup. OpenAI claims it is fighting iyO’s allegations of trademark infringement. The lawsuit has also revealed that OpenAI executives and former Apple leaders now working at io have been researching in-ear hardware devices for the past year.

Research into In-Ear Hardware Devices

According to filings submitted in iyO’s lawsuit, OpenAI and io purchased at least 30 headphone sets from various companies to explore the current market. In recent months, OpenAI and io executives also met with iyO’s leadership and demoed their in-ear technology. However, OpenAI’s first device in collaboration with io may not be a pair of headphones at all.

Prototype Details

Tang Tan, a longtime Apple executive and io’s chief hardware officer, claims in a declaration to the court that the prototype mentioned by OpenAI CEO Sam Altman is not an in-ear device or a wearable device. The design of the prototype is not yet finalized, and the product is at least a year away from being advertised or offered for sale.

Form Factor of OpenAI’s Device

The form factor of OpenAI and io’s first hardware device has largely remained a mystery. Altman has stated that the startup is working to create a “family” of AI devices with various capabilities. Ive has said that io’s first prototype “completely captured” his imagination. Altman has also mentioned that the device will be able to fit in a pocket or sit on a desk.

Device Capabilities

According to the Wall Street Journal, Altman has told OpenAI employees that the device will be fully aware of a user’s surroundings and will be a “third device” for consumers to use alongside their smartphone and laptop. OpenAI’s intent is to create products that go beyond traditional products and interfaces, said Altman in a declaration to the court.

Exploration of Devices

Lawyers representing OpenAI have said in a filing that the company has explored a wide range of devices, including desktop-based and mobile, wireless and wired, wearable and portable devices. While smart glasses have emerged as a front-runner for AI-enabled devices, several companies are also exploring AI-enabled headphones.

Meeting with iyO’s Leadership

In recent months, OpenAI and io executives have done considerable research into in-ear products. On May 1, OpenAI’s VP of Product, Peter Welinder, and Tan met with iyO’s CEO, Jason Rugolo, to learn more about iyO’s in-ear product. The meeting took place at io’s office in Jackson Square, where Ive has bought several buildings to work on LoveFrom and io.

Testing of iyO’s Product

At the meeting, Welinder and Tan tested out iyO’s custom-fit earpiece, but were disappointed when the product failed repeatedly during demonstrations. Tan claims in his declaration that he met with Rugolo as a courtesy to his mentor, longtime Apple executive Steve Zadesky, who recommended he take the meeting.

Potential Partnership

Rugolo tried repeatedly to forge a deeper relationship between iyO, io, and OpenAI, but largely failed. He pitched OpenAI on launching iyO’s device as an early “developer kit” for its final AI device and offered to sell his entire company for $200 million. However, Tan said in his declaration that he declined these offers.

Conclusion

The ChatGPT-maker seems to be more than a year out from selling its first hardware device, which may not be an in-ear product whatsoever. Given what the company said in this lawsuit, it appears it is also exploring other form factors. Evans Hankey, former Apple executive turned io co-founder and chief product officer, said in a declaration to the court that io is not working on a “custom-molded earpiece product.”