OpenAI’s Potential $500M Acquisition of Jony Ive’s AI Hardware Startup, Featuring Innovative Screenless AI Phone, Aims to Compete with Apple’s iPhone and Siri

Jony Ive, the esteemed former chief designer at Apple, along with Sam Altman, who leads OpenAI, are collaborating on an innovative startup called “io Products.” Recent reports suggest that OpenAI is contemplating a substantial acquisition of this AI hardware venture, estimated at $500 million. Founded over a year ago, io Products aims to revolutionize household technology with voice-enabled AI assistants, and intriguingly, they are also exploring the development of a unique AI phone that forgoes a traditional screen.

Transforming Household Technology: The Vision Behind io Products

Insiders indicate that this innovative phone, while referred to as a “phone, ” embodies features distinct from conventional mobile devices. The exact nature and functionality of this screenless phone remain largely undisclosed, raising anticipation for what’s to come. Currently, the project is in its infancy, suggesting that consumers may have to wait some time before a tangible product emerges. Unfortunately, any prototypes or design concepts have yet to be shared publicly.

Backed by investment from Laurene Powell Jobs’ Emerson Collective, as well as contributions from Jony Ive himself, io Products has assembled a small, elite team. Among its ranks are former Apple designers such as Tang Tan and Evans Hankey, who have invaluable experience from their work on the iPhone. While OpenAI is considering a complete acquisition, they are also open to the idea of forming a strategic partnership. According to a report by The Information, this would enable OpenAI to leverage io Products’ hardware technology and engineering expertise.

The proposed structure of the deal entails that the engineering team will focus on developing io Products, with OpenAI providing the necessary AI capabilities to enhance device functionality. Meanwhile, Jony Ive will engage with his design studio, LoveFrom, to ensure the implementation of cutting-edge aesthetics and user experience in the product line. If successful, this initiative has the potential to position OpenAI as a formidable competitor in the tech landscape, directly challenging Apple’s iPhone and its integrated AI features.

Currently, OpenAI has been collaborating with Apple, enhancing Siri with advancements similar to those found in ChatGPT. However, questions linger about how Apple’s Siri will stack up against emerging competition from io Products and other new entrants in the market. We will continue to monitor this evolving story and provide updates as further information becomes available.

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