OpenAI is reportedly exploring a potential acquisition of an AI startup co-founded by Apple design chief Jony Ive and OpenAI CEO Sam Altman.
The deal could exceed $500 million, according to The Information. The publication said the venture, called io Products, is developing a range of AI-powered technologies, including a screenless phone concept and smart home devices. However, the company has denied that a phone is currently in development.
The closely guarded AI hardware initiative was first reported by The New York Times in September. Ive – renowned for designing the iPhone, iPad and other iconic Apple products – announced he was partnering with Altman to create a new AI-driven computing device aimed at being “less socially disruptive than the iPhone.”
Although few specifics have emerged about the device, Ive and Altman have reportedly secured early-stage backing from investors, including Laurene Powell Jobs, widow of Apple co-founder Steve Jobs. Funding was expected to reach $1 billion by the end of last year, the report said.
In addition to acquisition talks, ChatGPT maker OpenAI is said to be exploring strategic partnerships with the venture. If a deal materializes, OpenAI would gain access to both the underlying technology and the core engineering team.
OpenAI didn’t respond to a request for comment.
The report arrives as the AI voice assistant landscape grows, with OpenAI, Google, Meta and others racing to advance their chatbot offerings. A deal could also tighten OpenAI’s integration with a hardware player.
Ive’s design firm, LoveFrom – founded after his departure from Apple five years ago – is spearheading the device’s development. The company, co-founded by renowned luxury designer Marc Newson (a key contributor to the Apple Watch), includes former Apple executives such as Tang Tan, who led iPhone hardware design. LoveFrom’s client list includes brands like Airbnb and Ferrari.