OpenAI in Talks To Buy Ive and Altman’s AI Hardware Startup

OpenAI is in talks to acquire io Products, the AI hardware startup founded by former Apple design chief Jony Ive and closely associated with OpenAI CEO Sam Altman. The ChatGPT maker could pay around $500 million for the company. If a deal doesn’t materialize, OpenAI may pursue a partnership.

Sources familiar with the matter say discussions are still in the early stages and no agreement has been finalized. If successful, the acquisition could allow OpenAI to integrate its AI technology into a proprietary device and bring it directly into the hands of consumers.

Altman is already working closely with Ive on io Products, though it’s unclear whether he has personally invested in it. Ive left Apple in 2019 to launch his design firm, LoveFrom, which is believed to support io Products’ design work. AI capabilities are said to come from OpenAI, while funding reportedly includes backing from Laurene Powell Jobs’ Emerson Collective and other investors. The company previously sought up to $1 billion in funding, according to earlier reports.

The startup has yet to unveil the products it’s been working on. Initial reports suggested that Ive and Altman were collaborating on “the iPhone of AI,” a phrase that has been misinterpreted as an AI phone. The device was described as AI-powered with a universal appeal, much like the iPhone.

The New York Times has reported that the startup’s goal is to develop devices that are “less socially disruptive than the iPhone.” The recent report from the Information cites several unidentified sources, with some saying io Products’ secretive device is a screenless phone, while others claim it’s not a phone at all.

What appears to be certain is that the device will act as a voice assistant. It’s worth noting that former Ive’s colleagues and Apple executives Imran Chaudhri and Bethany Bongiorno launched a screenless, voice-controlled, wearable device called Humane Ai Pin. Despite the significant hype, the device was discontinued after just a year due to poor performance.

While primarily focused on developing cutting-edge AI models such as ChatGPT, OpenAI has been showing growing interest in other projects. Aside from his close ties with io Products, Altman is reportedly seeking funding for an AI chip production project that could turn his startup into an all-around AI leader.

As of now, neither OpenAI nor io Products has publicly commented on the potential acquisition.