OpenAI’s hardware hits legal roadblock

Good morning, AI enthusiasts. Jony Ive and Sam Altman’s recent ‘io’ hardware partnership just got scrubbed from the web — courtesy of a court order from a startup claiming the AI giant stole greater than just a reputation.

With Google X spinoff iyO alleging suspicious meetings and an eerily similar concept, is the ability duo’s hyped AI device more imitation than innovation?

In today’s AI rundown:

• OpenAI scrubs ‘io’ over trademark clash

• ElevenLabs debuts latest voice assistant

• Learn how to optimize prompts for higher AI output

• Reddit eyes Altman’s World ID for human verification

• 4 latest AI tools & 4 job opportunities

LATEST DEVELOPMENTS

OPENAI

⚖️ OpenAI scrubs ‘io’ over trademark clash

The Rundown: OpenAI just removed all promotional materials for its $6.5B acquisition of Jony Ive’s AI hardware startup, io, reportedly because of a court order tied to a trademark dispute with Google X spinout iyO.

The main points:

• iyO creates hardware that “allows users to interact with their smartphones, computers, AI, and the web without using physical interfaces.”

• The startup’s latest product is the iyO One AI-powered earbuds, a “computer and not using a screen” that may run apps via voice and converse with the user.

• The filing alleges that Sam Altman and Ive’s LoveFrom met with iyO initially in 2022 and again in Spring 2025 just before the io announcement.

• OpenAI removed the blog post and nine-minute video featuring Ive and Altman from its website and YouTube channels following the legal motion.

• Nonetheless, the corporate maintains that the acquisition stays on the right track, calling the trademark grievance “utterly baseless.”

Why it matters: While that is unlikely to derail OpenAI and Jony Ive’s hardware plans, the alleged details within the filing — from LoveFrom employees purchasing the device and directly asking to share details to the nearly an identical name itself — actually don’t paint the identical picture of innovation the AI leader has created so far around io.

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ELEVENLABS

🗣️ElevenLabs debuts latest voice assistant

The Rundown: AI voice platform ElevenLabs just launched 11ai, an in-house voice assistant that connects to tools via Anthropic’s Model Context Protocol to execute tasks somewhat than simply answer questions.

The main points:

• The experimental alpha release integrates with platforms like Perplexity, Linear, Slack, and Notion, allowing users to administer tasks through voice commands.

• Developers may also add custom MCP servers for added integrations and workflows beyond the pre-built connections.

• The platform offers 5,000+ voice options and supports voice cloning, running on ElevenLabs’ own conversational AI infrastructure.

• 11ai is free to make use of and take a look at for “several weeks,” allowing the corporate to collect feedback on the product and integrations.

Why it matters: ElevenLabs already has a few of the strongest speech models available on the market, and pairing them with MCP for tools, data access, and actions could showcase how voice assistants can actually be more useful than Siri and other outdated assistants could have led consumers to consider.

AI TRAINING

🔧 Learn how to optimize prompts for higher AI output

The Rundown: On this tutorial, you’ll learn use OpenAI Playground’s latest automatic prompt optimization tool to rework basic prompts into high-performance system messages for simpler AI interactions.

Step-by-step:

1. Go to OpenAI Playground and access the Prompts section

2. Write your basic system message describing what you wish the AI to do

3. Click the “Optimize” button to robotically improve your prompt with higher structure and clarity

4. Review it after which “Save” it with a descriptive name to reuse in projects and API calls

Pro tip: Test optimized prompts with various inputs to make sure consistent performance across different use cases.

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• On-demand compute — pay just for what you utilize

• No job limits or vendor lock-in

• Out-of-the-box checkpoints and caching

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REDDIT

👁️ Reddit eyes Altman’s World ID for human verification

The Rundown: Reddit is reportedly negotiating with Sam Altman’s Tools For Humanity to integrate the corporate’s iris-scanning World ID Orb system, allowing users to supply proof of humanity while staying anonymous.

The main points:

• The system would offer Reddit users optional verification through World ID’s encrypted iris scans, which fragment biometric data across servers worldwide.

• CEO Steve Huffman hinted on the shift last month, posting on efforts to preserve anonymity while deterring the flood of AI accounts on the platform.

• World ID assigns users cryptographic proof without storing personal data, though minors under 18 are currently blocked from the Orb scanning process.

• The partnership would position Reddit as the primary major U.S. social platform to check biometric verification at scale other than easy email checks.

Why it matters: The “Dead Web” theory of the online becoming overrun with AI bots is an actual concern — and something already being experienced across social media platforms. While World’s Iris scanning initiatives were initially met with tons of skepticism and anger, the necessity for human verification goes to be very real.

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💼 AI Job Opportunities

• 📞 The Rundown – Account Manager

• 🌍 Cresta – Product Manager

• 🔬 Anthropic – Research Manager

• ⚖️ OpenAI – Product Counsel

📰 Every part else in AI today

Disney has been in talks with “corporations like OpenAI” to license its characters and IP, but its lawsuit against Midjourney “likely won’t be the last” against AI firms.

A U.S. official claimed DeepSeek is working with the Chinese government on military and intelligence ops, while using workarounds to access advanced AI chips.

Google released Magenta RealTime, an open live music AI and “cousin” of its Lyria model, allowing users to create/mix music live and locally on consumer hardware.

Meta also met with Runway for a possible acquisition, along with reported meetings with SSI, Pondering Machines, and Perplexity, though a deal never materialized.

Softbank CEO Masayoshi Son is reportedly pitching a “Crystal Land” $1B megahub for AI and robotics manufacturing in Arizona, courting TSMC and Samsung.

Microsoft debuted Mu, a brand new small language model that powers agentic capabilities in Settings for on-device use on Windows Copilot + PCs.

COMMUNITY

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Join our next workshop on Wednesday, June twenty fifth at 3 PM EST with Max Brodeur-Urbas, Founder & CEO at Gumloop. By the tip of the workshop, you’ll know construct production-grade AI agents that mix context, reasoning, and actions with Gumloop.

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See you soon,

Rowan, Joey, Zach, Alvaro, and Jason—The Rundown’s editorial team