From The Journal of the Oomoto Foundation and the Aizenkai:
O'sensei named it Kohbu Budoh (Divine Warriors' Martial Art), but Onisaburo recommended that he change the name from Kohbu to Aiki. Aiki is the energy of love, or divine spirit. Eventually the name became Aikido, the way of love or divine spirit.
His descriptions of Aikido might seems too simple and grandiose to believe. Perhaps only after dedicated training and practice of Aikido can one fully understand and believe the truth.
Real martial art is a labor of love, it is
the work of giving life to all beings, and not
killing or struggling against someone else.
Love is God guarding everything. Without it,
nothing could exist. Aikido is the realization of
Therefore, to have a contest of technique,
to win or lose, is not real martial art. Real martial
art does not know defeat. "Never defeated"
means "never fighting."
Victory is to cleanse your mind of discord
within yourself. That is, fully accomplish that
which you are here to do. This is not mere
theory. Practice it. Then you will accept the
great power of unity with nature.
O'sensei founded Aikido and I don't think he created it. The word Aiki is older than O'sensei