OpenAI is reportedly planning to acquire Jony Ive and Sam Altman’s secret AI device startup, the Information reports. 

The startup, called io Products, has been quietly developing AI-native devices, including a “phone” without a screen and other household tech powered by artificial intelligence. OpenAI plans to purchase the startup for $500 million, the report said.

Jony Ive and Sam Altman have been collaborating on a new AI hardware project. Their partnership began in 2022, and in 2023, the startup had already secured office space and assembled a team of 10 workers.

What’s in the io Products deal?

The reports say OpenAI may consider a full purchase or opt for a potential partnership with the AI device startup. If the deal goes through, it will add to OpenAI’s AI-powered offerings, from browser-controlling assistants to custom AI chips and even humanoid robotics.

OpenAI would also gain a team. The structure of the partnership includes engineers from io Products, AI models and infrastructure from OpenAI, and industrial design from Ive’s LoveFrom studio.

The acquisition could set OpenAI as a strong competitor with Apple, despite their current AI partnership that enables ChatGPT to power certain queries in Apple’s Siri. 

According to The New York Post, Apple is struggling to implement more advanced generative AI features into its own devices. But now, OpenAI may be on track to build its own AI device ecosystem, a potential rival to Apple’s.

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