Jony Ive — renowned for his collaboration with the late Apple co-founder Steve Jobs on iconic products like the iPhone — has been working with OpenAI CEO Sam Altman since 2023 to develop an AI-powered hardware device through his startup, io Products.

Figure 1. OpenAI Eyes $500M Acquisition of Jony Ive’s AI Hardware Venture.

According to a report from The Information on Monday, OpenAI has been exploring a "full acquisition" of the firm, among other strategic options, citing sources familiar with the discussions. Figure 1 shows OpenAI Eyes $500M Acquisition of Jony Ive’s AI Hardware Venture.

If the deal moves forward, OpenAI — which recently raised $40 billion in new funding at a $300 billion valuation — would also absorb the design team behind the AI hardware device, according to the report.

The startup may end up competing directly with Apple, a company that has aggressively marketed AI features for its flagship iPhones but has faced challenges in fully implementing the advanced technology.

Ive and Altman have reportedly explored how the device could leverage AI to handle everyday tasks—such as booking travel or identifying a plant from a photo—in ways that go beyond the capabilities of conventional smartphones.

San Francisco-based io Products has also attracted top talent from Apple, including Tang Tan, who oversaw iPhone and Apple Watch design, and Evans Hankey, who succeeded Ive as Apple’s lead designer before departing in 2023.

The Big News – A Potential $500M Deal

OpenAI is reportedly in talks to acquire a startup co-founded by legendary designer Jony Ive. The deal, valued at around $500 million, would mark a major move by OpenAI into the hardware space. The startup, known as io Products, is working on a next-gen AI-powered personal device—one that could rival smartphones in functionality but be centered entirely around artificial intelligence.

The People Behind the Project

The startup brings together a powerful duo:

• Jony Ivethe former Chief Design Officer at Apple, known for iconic products like the iPhone, iPod, and MacBook.
• Sam AltmanCEO of OpenAI, whose vision is to bring advanced AI to consumers in everyday life. Ive’s design expertise and Altman’s AI leadership could combine to create a groundbreaking product in the consumer tech world.

What the Device Could Do

Though details are still under wraps, the AI device is described as a “personal device” with capabilities that go beyond smartphones. It could:

• Use AI to handle tasks like travel bookings
• Identify objects (like plants) through photos
• Offer a more intuitive, voice-first or assistant-driven interface
• Rethink how people interact with technology—less screen time, more ambient intelligence

A New Apple Rival?

The startup could pose a direct challenge to Apple, especially as Apple has promoted AI integrations in iPhones but struggled to fully deliver on advanced AI experiences. Adding to the intrigue, io Products has already poached top Apple talent, including:

• Tang Tan, former head of iPhone and Apple Watch design
• Evans Hankey, who replaced Ive as Apple’s top designer

Why This Matters

If the acquisition goes through, OpenAI would:

• Gain a major foothold in consumer hardware
• Control both the software (like ChatGPT) and the physical device it's running on
• Potentially shape the future of AI-assisted living

This move would signal OpenAI’s evolution from a software-only company into a full-fledged AI ecosystem provider—something that could redefine how we interact with technology daily.

Source: BUSINESS

Cite this article:

Priyadharshini S (2025), OpenAI Reportedly Considering $500M Acquisition of Jony Ive’s AI Device Startup, AnaTechMaz, pp. 82