OpenAI May Acquire Jony Ive’s AI Hardware Startup for $500M

OpenAI is reportedly in discussions to acquire an AI hardware startup co-founded by its CEO Sam Altman and former Apple design chief Jony Ive, according to The Information. The startup, known as io Products, remains in stealth mode but is believed to be developing a next-generation consumer device powered by artificial intelligence.

The proposed acquisition, which could be valued at approximately $500 million, would mark OpenAI’s first major move into the consumer hardware space. While the exact nature of the products under development remains undisclosed, sources suggest they include a “screenless” AI-powered device designed to offer a more ambient and less attention-demanding experience than today’s smartphones, along with other AI-enabled household technologies. The project is operating from a 32,000-square-foot office in San Francisco, part of a significant real estate investment by Ive.

If the deal goes through, OpenAI would gain access to the startup's proprietary technology and an elite engineering team that includes former Apple executives Tang Tan and Evans Hankey. This acquisition could significantly expand OpenAI’s consumer-facing offerings and strengthen its position in the growing AI hardware market.

The collaboration between Altman and Ive was first reported in 2023, with Ive publicly confirming the AI hardware project in September 2024 when reports emerged that Altman and Ive had joined forces to rethink how humans interact with AI.

Why This Matters

If finalized, the deal could give OpenAI a direct channel to deliver its AI models — including ChatGPT — directly to consumers through purpose-built hardware. The company is said to be exploring both a full acquisition and a more flexible partnership.

The venture has also attracted backing from Emerson Collective, the philanthropic and investment organization founded by Laurene Powell Jobs.

As of now, neither OpenAI nor io Products has publicly confirmed the talks or provided further details. However, the ongoing discussions reflect OpenAI’s deepening interest in shaping how its AI technologies are integrated into everyday life—extending beyond chatbots and software into tangible, user-centric hardware.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.