Sam Altman’s OpenAI has reportedly considered buying a startup run by former Apple design guru Jony Ive for at least $500 million.
Ive — best known for working with late Apple co-founder Steve Jobs on many of company’s most iconic product designs, including the iPhone — has been collaborating with Altman on developing an AI-powered hardware device for the startup, known as io Products, since 2023.
Now, the ChatGPT maker has discussed a “full acquisition” of the firm, among other options, The Information reported Monday, citing sources with direct knowledge of the talks.
If a deal were to move forward, OpenAI — which recently secured $40 billion in new financing at a $300 billion valuation — would also integrate the design team working on the AI hardware device, the report added.
The startup could find itself in direct competition with Apple, which has heavily promoted AI integrations for its flagship iPhones but struggled to implement the advanced technology.
The AI-powered hardware was described as a “personal device,” though The Information’s sources said the firm has yet to settle on a final design.
Some have reportedly described the product as an AI-powered smartphone without a screen, while others insist it is “not a phone.”
OpenAI declined to comment.
While Altman has informally worked with Ive on the plans, he is not considered a co-founder of io Products. It’s unknown if he is an investor.
Ive left Apple in 2019 to start his own design firm called LoveFrom.
Last year, he confirmed for the first time in an interview with the New York Times that he was working with Altman on an AI hardware project.
Ive and Altman reportedly have discussed how such a device would use AI for daily tasks like booking travel or identifying a specific plant from a photo that exceeded the capabilities of traditional smartphones.
San Francisco-based io Products poached a pair of key ex-Apple executives: Tang Tan, who led the teams responsible for iPhone design and Apple Watch, and Evans Hankey, who took over from Ive as Apple’s top designer before leaving in 2023.
Last month, the boss of the Apple team responsible for the Siri digital assistant called a delay of promised AI features for the iPhone “ugly” and said employees “might be feeling embarrassed” about the snafu.
The company has postponed the launch of its AI overhaul for Siri while it works out the bugs.