Newly disclosed legal filings from the teams representing OpenAI and Jony Ive's project, io, have thrown light on their dynamic plans. They're working on designing an AI device for mass-market use.

The legal documents have emerged from a trademark infringement suit filed by iyO, a hardware startup backed by Google.iyO is actively working on creating earpieces that are custom-molded and have different device ports. Last weekend, OpenAI had to withdraw its promotional materials pertaining to the whopping $6.5 billion acquisition of Jony Ive’s io startup. The removal was enforced by a court order issued in relation to the ongoing lawsuit.At the moment, OpenAI is defending itself against iyO's claims of trademark infringement.

As per the filings from last year, executives from OpenAI and Apple veterans now part of io have been hard at work investigating in-ear hardware devices. A court filing from June 12 goes on to reveal that around 30 different sets of headphones have been purchased with the intention to analyze existing market offerings. In recent times, representatives from OpenAI and io have also held discussions and attended live demonstrations with iyO's leaders.

Despite all the buzz, OpenAI's first collaborative venture with io might not be a pair of headphones.

Tang Tan, a seasoned Apple executive who helms the position of chief hardware officer at io, recently stated in a court declaration that the prototype hinted at in io’s launch video by OpenAI CEO Sam Altman, is neither an in-ear nor a wearable device. Tan further clarified that the design of the prototype is still under wraps, and the product itself is at least a year away from hitting the market.

The form and function of OpenAI and io's debut hardware device still remain cloaked in mystery. In the unveiling video, Altman just defined the gadget as part of a "family" of AI gadgets with different features. In line with this, Ive stated that io's initial prototype had fully "captured" his imagination.

Once the company's prototype device was completed, Altman had earlier informed his staff that it would be small enough to put in your pocket or just sit on your desk. He underlined that the gadget would be completely aware of its environment and serve as a "third device" for users, assisting devices and smartphones.

In a different court ruling, Altman affirmed OpenAI's aim to creating devices that go beyond conventional interfaces and goods. OpenAI's aim in creating a wide range of devices, from desktop-based to mobile, wireless to wired, wearable to portable, has been explained by the company's attorneys.

While AI-enabled smart glasses seem to be the number one trend with tech giants like Meta and Google racing to triumph with the first widespread pair, several companies, including Apple, are rumored to be working on AI-enabled headphones. Apple is said to be working on a pair of AirPods fitted with cameras. The cameras would aid the implementation of AI features by analyzing the wearer's surroundings.

In the past few months, both OpenAI and io executives have upped their research ambitions, extensively exploring in-ear products. There was a significant meeting between Peter Welinder, OpenAI’s VP of Product, and Jason Rugolo, iyO’s CEO, in io's office in San Francisco's Jackson Square neighborhood. However, the demonstration of iyO's custom-fit earpiece disappointed the attendees from OpenAI and io due to persistent performance issues.

It appears that OpenAI and io employees hoped to learn from one of iyO's partners – an ear-scanning company called The Ear Project. Despite a few hiccups in initiating deeper collaborations between the three companies, one thing's for sure – OpenAI and io are exploring various form factors to introduce an AI device that's more than just an in-ear product.