Rumors of a collaboration between OpenAI and Jony Ive have been circulating for over a year. While initial rumors hinted at a joint AI hardware device between OpenAI and the legendary Apple designer, more details about the mysterious product have emerged.
OpenAI — the company that created ChatGPT — has entered into a deal to acquire an AI hardware startup co-founded by Jony Ive and OpenAI CEO Sam Altman, according to a new report from The Information. The deal is reportedly worth around $500 million.

The Ive-Altman collaboration, codenamed io Products, is focused on developing a variety of AI products and smart home devices. However, the startup is said to be bucking the trend by launching a completely screenless AI phone. However, some sources directly involved in the project claim that the product is “not a phone per se.”
It’s unclear what Jony Ive, Apple’s former chief design officer, was working on. The concept of a screenless AI phone is reminiscent of the Humane AI Battery, but it was a failed product that failed to live up to its potential and eventually led to the company selling it to HP.
OpenAI is also considering a partnership with Ive and Altman’s AI hardware startup rather than an outright acquisition. The leading AI company could provide software and technical support while Ive and his team focus on product design.
If the deal goes through, OpenAI will take over the core technology and engineering team of the promising startup. Notably, two former Apple designers, Tang Tan and Evans Hankey, have also joined Jony Ive’s AI project.
While the idea is still in its infancy, the idea of AI phones could have huge potential for the future. The key question manufacturers need to address is: How does this product differentiate itself from a traditional smartphone with ChatGPT or Siri built in?