April 14, 2025 — San Francisco, CA — OpenAI, the artificial intelligence pioneer behind ChatGPT, is reportedly in deep discussions to acquire or partner with io Products, an AI-focused hardware startup co-founded by Sir Jony Ive, the celebrated former Apple design chief, and OpenAI CEO Sam Altman.
According to reporting from The Information and earlier coverage by The New York Times, the potential deal could exceed $500 million, as OpenAI eyes tighter integration between its software capabilities and custom-designed hardware that reimagines how users interact with AI.
A Radical Shift from the Screen
The center of attention is a screenless AI-powered device—a stark departure from current smartphones. Although io Products has denied they are building a “phone” per se, insiders familiar with the project describe it as a voice-first computing device that could blend ambient intelligence with minimal user disruption—conceptually echoing the design philosophy behind smart assistants like the Amazon Echo or Rabbit R1, but powered by OpenAI’s LLM.
Jony Ive—renowned for his work on the iPhone, iPad, MacBook, and Apple Watch—aims to create a product that is “less socially disruptive than the smartphone,” reflecting growing global concerns around screen addiction and digital wellness.
Strategic Hardware Moves by OpenAI
OpenAI, a company primarily known for its software innovations, including ChatGPT, DALL·E, and the enterprise-grade GPT-4 Turbo, appears to be making its first serious move into the consumer hardware space. Analysts say such a move could allow OpenAI to offer a more seamless AI user experience outside of the traditional app ecosystem.
According to Jitesh Ubrani, Research Manager at IDC, the shift towards a hardware-first approach could allow OpenAI to “extend its lead across diverse device types and real-world usage scenarios.” Ubrani suggests that smart home innovation has plateaued in recent years and believes injecting OpenAI’s conversational AI into hardware could rejuvenate the space.
Powerhouse Design and Engineering Team
The hardware project is being spearheaded by LoveFrom, Jony Ive’s creative agency formed after leaving Apple in 2019. The firm includes top-tier talent like Marc Newson, co-designer of the Apple Watch, and Tang Tan, former VP of iPhone hardware engineering at Apple. LoveFrom’s portfolio includes luxury clients such as Airbnb, Ferrari, and Moncler.
The team’s partnership with OpenAI could result in an AI device that stands apart from traditional screens or touch-based input models, potentially relying on voice, sensors, and context-aware intelligence to assist users in real time.
Major Backers and Billion-Dollar Funding
Backing for the venture includes tech luminaries and investors such as Laurene Powell Jobs, founder of Emerson Collective and widow of Apple co-founder Steve Jobs. According to the NYT, the startup aimed to secure up to $1 billion in funding by late 2024, signaling high expectations for the product’s future impact.
Rising Competition in AI Devices
This development comes amid a surge of AI-centric hardware initiatives. Companies like Google, Meta, Amazon, and newer players like Humane and Rabbit are racing to create AI-first devices that redefine how we interact with information.
OpenAI’s potential entry into this market—especially with design pedigree from Apple veterans—could shake up the landscape, offering a new class of AI experiences that integrate tightly with ChatGPT’s capabilities in reasoning, conversation, and content generation.
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