OpenAI, led by Sam Altman, has reportedly explored the option of acquiring a startup managed by ex-Apple design chief Jony Ive for at least $500 million.
Ive, renowned for collaborating with the late Apple co-founder Steve Jobs on several iconic product designs like the iPhone, has been partnering with Altman since 2023 to develop AI-enabled hardware solutions for startups called IO products.
Currently, the creators of ChatGPT are evaluating the possibilities of a “complete acquisition” of the company, along with other alternatives. The Information reported on Monday, referencing sources familiar with the discussions.
If this acquisition proceeds, OpenAI, which recently garnered $40 billion in funding pushing its valuation to $300 billion, would enhance its design team focused on AI hardware products, according to the report.
This startup may directly compete with Apple. Apple is actively promoting AI integration into its flagship iPhones but is facing challenges in incorporating advanced technology.
The AI-driven hardware has been referred to as “personal devices,” yet insiders indicate that the final design is not yet confirmed.
Some sources describe the product as a screenless AI-driven smartphone, while others contend that it is “not a phone.”
OpenAI opted not to comment.
Altman has been informally collaborating with Ive on the project but is not recognized as a co-founder of IO products. It remains unclear if he is a financial backer.
Ive exited Apple in 2019 to establish his own design firm, Lovefrom.
In an interview with the New York Times last year, he acknowledged for the first time his collaboration with Altman on the AI hardware initiative.
I’ve and Altman are reportedly discussing ways these devices can leverage AI for routine activities like travel booking and identifying plants from images, extending beyond conventional smartphone features.
IO products, based in San Francisco, has onboarded Tang Tan, who managed the iPhone design team, and Evans Hankey, who succeeded Ive as Apple’s lead designer before his departure in 2023.
Last month, the head of the Apple team responsible for the SIRI digital assistant called delays in the iPhone’s “ugi” AI features “embarrassing,” causing employees to express frustrations over the situation.
The company has postponed the rollout of SIRI’s AI update and fixed the related issues.
