OpenAI Bets $500 Million On Altman And Jony Ive’s Secret AI Device

According to an exclusive report by The Information, OpenAI is considering acquiring the stealthy AI hardware startup founded by CEO Sam Altman and former iPhone designer Jony Ive over a year ago.

Since its inception, the startup’s device has sparked significant intrigue in the tech world — and now, it’s being eyed for a potential $500 million acquisition by OpenAI.

The concept was reportedly born out of informal conversations between Ive and Altman, with the goal of creating a device that is less socially disruptive than smartphones.

The New York Times first reported the collaboration in an article about Ive and his activities since his departure from Apple five years ago.

“io Products,” the duo’s venture, focuses on developing AI-powered personal devices that align with Altman’s vision of voice-enabled assistants reminiscent of science fiction. The acquisition talks coincide with reflections on 2024’s notable hardware failures, such as the Rabbit R1 and Humane Ai Pin, which, despite substantial funding and publicity, failed to deliver on their AI assistant promises.

Despite claims from those close to the project that it is “not a phone,” a new AI-powered product is in development, which may include a screenless phone and other AI-enabled household products, according to sources with knowledge of the project.

Ive and Altman’s collaboration originated from an introduction by Brian Chesky, the CEO of Airbnb. Their current project, potentially Ive’s most notable since leaving Apple, is backed by funding from Laurene Powell Jobs’ Emerson Collective and Ive himself.

Even though the startup currently employs very few people it has some of the brightest minds in it. Tang Tan and Evans Hankey, who worked alongside Ive on the iPhone during his time at Apple, have joined Ive’s new venture. The team is based out of a new 32,000-square-foot office in San Francisco, which is part of Ive’s $90 million real estate investment. This AI-powered hardware device, shrouded in mystery, is designed to be less socially disruptive. While details are scarce, it’s been described as not a phone. Some speculate it could be a screenless AI gadget or smart home device that uses natural voice interaction.

Altman appears to be focused on taking part in the development of superior voice assistants. Last year, OpenAI introduced a voice mode for ChatGPT that enables users to have spoken conversations with the chatbot.

The AI capabilities will likely be driven by OpenAI’s most advanced models, potentially including the latest versions of ChatGPT and Whisper, and possibly vision and multimodal features. The hardware’s design, overseen by Jony Ive’s firm LoveFrom, will focus on a sleek and intuitive form factor that deviates from today’s screen-heavy devices, promising a less distracting user experience.