Tang Tan, a seasoned Apple executive who co-founded io and holds the position of the startup’s chief hardware officer, stated in court that the prototype mentioned by OpenAI CEO Sam Altman in io’s launch video is neither an in-ear nor wearable device. Tan mentioned that the prototype’s design has yet to be finalized and that the product will not be advertised or available for purchase for at least a year.
Rugolo repeatedly attempted to establish a closer relationship between iyO, io, and OpenAI but was largely unsuccessful, according to the emails. He proposed to OpenAI the idea of launching iyO’s device as an initial “developer kit” for their final AI device. He also suggested that OpenAI invest in iyO or, at one point, offered to sell his entire company for $200 million, as mentioned in the filings. Nonetheless, Tan mentioned in his declaration that he turned down these propositions.
However, employees from OpenAI and io seemed eager to glean insights from one of iyO’s partners. To customize their in-ear headsets, iyO engaged a specialist from an ear-scanning company called The Ear Project to create detailed ear maps at someone’s residence or workplace.
Recent legal documents filed by attorneys representing OpenAI and Jony Ive’s io have shed light on the companies’ endeavors to develop a mainstream AI hardware device.
The specifics about the form factor of OpenAI and io’s first hardware device remain largely unknown. Altman only hinted in io’s launch video that the startup aims to introduce a “family” of AI devices with diverse functionalities, while Ive expressed that io’s initial prototype has greatly captivated his imagination.
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, as indicated in an email invitation uncovered in the case. The meeting took place at io’s office in Jackson Square, an area of San Francisco where Ive has purchased multiple buildings to work on LoveFrom and io.
During the meeting, Welinder and Tan tested out iyO’s custom-fit earpiece, but were left dissatisfied as the product failed repeatedly during demonstrations, according to follow-up emails presented in the case.
Tan explained in his declaration that he met with Rugolo out of respect for his mentor, longtime Apple executive Steve Zadesky, who had recommended the meeting. Tan also took precautions to avoid learning too much about iyO’s intellectual property, suggesting that his lawyers review materials before he did.
While smart glasses are currently at the forefront of AI-enabled devices, with companies like Meta and Google vying to launch the first widely adopted pair, several companies are delving into AI-enabled headphones. Apple is reportedly developing AirPods with integrated cameras to support AI functionality by gathering environmental data.
Altman previously informed OpenAI’s staff at a meeting that the company’s forthcoming prototype will be compact enough to fit in a pocket or sit on a desk, as reported by the Wall Street Journal. The device is purportedly designed to be fully aware of the user’s surroundings and will serve as a “third device” for consumers alongside smartphones and laptops.
It appears that ChatGPT-maker is still more than a year away from launching its first hardware device, which might not be an in-ear product after all. Based on the lawsuit details, it seems that they are also exploring other device formats.
In the past year, executives from OpenAI and former Apple leaders now working at io have conducted extensive research on in-ear hardware devices, as revealed in the filings for iyO’s lawsuit. According to documents submitted on June 12, the companies procured over 30 headphone sets from different manufacturers to analyze the current market offerings. Additionally, executives from OpenAI and io met with iyO’s leadership in recent months and showcased their in-ear technology, as documented in the case.
Despite this, the initial device resulting from the collaboration between OpenAI and io may not actually be a pair of headphones.
In one of the emails disclosed in the case, Marwan Rammah, a former Apple engineer now employed at io, communicated to Tan that acquiring a vast database of three-dimensional scans from The Ear Project could provide a valuable foundation on ergonomics. It remains unclear whether such a collaboration transpired.
In a declaration submitted to the court on June 12, Altman stated, “Our intent with this collaboration was, and is, to create products that go beyond traditional products and interfaces.”
Evans Hankey, a former Apple executive who has transitioned to being an io co-founder and chief product officer, confirmed in a court statement that io is not in the process of developing a “custom-molded earpiece product.”
In recent months, executives from OpenAI and io have conducted extensive research on in-ear products.
OpenAI’s legal representatives also mentioned in a filing that the company has evaluated a broad spectrum of devices, encompassing desktop-based and mobile devices, both wireless and wired, as well as wearable and portable devices.
The filings are related to a trademark dispute brought forward by iyO, a hardware startup supported by Google, which specializes in customized earpieces that can connect to various devices. Over the weekend, OpenAI removed promotional materials linked to its $6.5 billion acquisition of Jony Ive’s io startup in compliance with a court order associated with the lawsuit. OpenAI has stated that it is contesting iyO’s claims of trademark infringement.
