
OpenAI may soon step beyond software by exploring a partnership—or possible acquisition—of io Products, an AI startup co-founded by former Apple design legend Jony Ive and OpenAI CEO Sam Altman. According to The Information, the deal could exceed $500 million. Although the startup is reportedly working on various AI-powered devices, including a screenless phone, io Products has publicly denied the existence of a phone project.
Still, the company’s vision is bold. As previously reported by The New York Times, Ive and Altman want to build a device that’s less disruptive than smartphones, especially in social settings. Backing from major investors, including Laurene Powell Jobs, highlights just how much potential some see in this effort. Funding was said to approach $1 billion by the end of 2024, indicating confidence in the team and the idea.
Design Meets Intelligence
Even though exact product details remain scarce, the talent behind the project is significant. Ive’s firm, LoveFrom, is leading the development effort. Co-founded with designer Marc Newson, LoveFrom has assembled a team of former Apple engineers, including Tang Tan, who led iPhone hardware design. Their combined experience gives this venture considerable credibility, especially as it tries to reimagine how AI can fit seamlessly into everyday life.
In parallel, OpenAI is reportedly considering strategic partnerships with io Products. If a deal moves forward, OpenAI would not only gain access to advanced AI hardware concepts but also bring top engineering talent into its fold. That combination could allow it to push ChatGPT and other services onto new platforms, reaching users beyond phones and computers.
An Evolving Landscape with Risks and Rewards
This move comes as competition heats up. Google, Meta, and other tech giants are racing to integrate AI into voice assistants and devices. According to IDC’s Jitesh Ubrani, a partnership like this could allow OpenAI to maintain its momentum by embedding AI in new environments, especially the home.
However, the effort carries risks. Forrester analyst Dipanjan Chatterjee notes that bold hardware redesigns can backfire, particularly when consumers hesitate to upgrade. While Apple has yet to trigger a significant iPhone upgrade cycle, a leap in design could either rekindle excitement or prompt users to delay purchases even further.
Still, if successful, the collaboration between OpenAI and Ive’s team could redefine personal technology—offering devices that are intelligent, ambient, and less intrusive than the screens we carry today.