OpenAI Scrubs Jony Ive Deal From Website After Trademark Lawsuit Threatens $6.5 Billion IO Products Acquisition

Over the weekend, ChatGPT-parent OpenAI pulled all public materials related to its $6.5 billion acquisition of Jony Ive's AI hardware startup, IO Products.

What Happened: The takedown followed a trademark lawsuit filed by IYO Inc., a separate AI device company, which claims the “IO” branding infringes on its intellectual property, reported Bloomberg.

A spokesperson for OpenAI confirmed the removal to the publication and said it was due to the ongoing legal matter. Ive's representative called the suit "an utterly baseless complaint," adding, "We'll fight it vigorously."

Earlier, the publication reported that a judge was weighing a preliminary injunction that could bar OpenAI from using the IO name during the legal proceedings.

Why It's Important: The $6.5 billion acquisition marked OpenAI's most ambitious push into AI hardware. Ive, the former chief design officer at Apple Inc. AAPL, is renowned for designing iconic products like the iPhone and MacBook.

Following the acquisition announcement in May, Gene Munster, managing partner at Deepwater Asset Management, said that OpenAI poses the first major competitive threat to Apple in 20 years.

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