April 8, 2025 | San Francisco, CA — OpenAI, the company behind ChatGPT, is reportedly in advanced discussions to either partner with or acquire io Products, an emerging AI hardware startup co-founded by legendary Apple designer Sir Jony Ive and OpenAI CEO Sam Altman.
According to sources familiar with the matter, the deal could exceed $500 million, underscoring OpenAI’s growing ambitions to transition from pure software to integrated hardware ecosystems. The startup is said to be developing a range of AI-centric devices — including a screenless AI assistant — that could redefine how people interact with artificial intelligence in their daily lives.
💡 A Minimalist Future? Screenless Phone Concept in Development
While io Products has publicly denied the development of a traditional phone, industry insiders suggest the team is working on a screenless AI device that serves as a contextual voice-first assistant. The idea? A less intrusive, more intuitive interface — potentially a radical departure from the screen-dominated smartphones that dominate today’s market.
The initiative is being shaped at LoveFrom, the design consultancy founded by Ive after his departure from Apple in 2019. The team includes Marc Newson, co-designer of the Apple Watch, and Tang Tan, former VP of iPhone hardware engineering at Apple. LoveFrom is known for collaborations with luxury brands such as Ferrari and Airbnb, but this marks a pivot toward mainstream consumer electronics.
💰 Big-Name Backing: Laurene Powell Jobs Among Early Investors
According to a September report by The New York Times, Laurene Powell Jobs — philanthropist and widow of Steve Jobs — has backed the venture. Funding commitments were expected to hit $1 billion by the end of 2024, reflecting strong confidence in the team’s vision of a more seamless AI-human interface.
While no official comments have been made by OpenAI or io Products, insiders told The Information that the potential partnership could also involve strategic engineering collaboration, providing OpenAI with access to both core hardware expertise and proprietary device platforms.
🏡 Smart Homes, Smarter Integration
Beyond personal devices, io Products is also said to be developing AI-powered smart home devices. Analysts say this aligns with OpenAI’s interest in embedding ChatGPT across various interfaces — from mobile apps to ambient computing environments.
Jitesh Ubrani, Research Manager at IDC, told CNET that entering the hardware space could help OpenAI maintain its leadership against rivals like Google, Amazon, and Meta. “Combining AI with physical products could reignite innovation in the smart home space, which has seen stagnation in recent years,” he noted.
🔍 Strategic Risks and Competitive Timing
But not everyone is convinced this is the right move at the right time. Dipanjan Chatterjee, VP at Forrester, warned that betting too early on radical form factors — such as a screenless device — could alienate users still acclimating to AI through smartphones and smart speakers.
He added that Apple’s stagnant iPhone design, coupled with tepid adoption of Siri, may create a window of opportunity — but only if OpenAI and Ive can deliver a product that truly captures user imagination.
“A bold design sounds like a great idea, but the challenge is timing and user readiness,” Chatterjee said.
🤖 ChatGPT Meets Industrial Design: The Future of Human-AI Interaction?
The push into hardware could ultimately position OpenAI not just as an AI model provider, but as a platform ecosystem—a strategy reminiscent of Apple’s end-to-end integration of hardware, software, and services.
As competition heats up between Anthropic, Meta AI, Claude, and Google Gemini, the next battleground may not be just in models—but in how AI shows up in your home, your pocket, and your life.
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