Core viewpoint: OpenAI’s strategic move into AI hardware, spearheaded by Jony Ive, signals a potential revolution in how we interact with AI, moving beyond traditional screens and interfaces.
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion
OpenAI is acquiring Jony Ive’s AI device startup, io, for nearly $6.5 billion in an all-equity deal. The acquisition brings Ive, the former Apple design chief, into OpenAI to lead creative and design efforts, aiming to develop a new family of AI-powered devices. Ive and his design firm, LoveFrom, will continue to work independently of OpenAI, while the io team, including co-founders Scott Cannon, Evans Hankey, and Tang Tan, will become OpenAI employees. Many of io’s employees are former Apple designers. The deal also positions Ive in charge of moving OpenAI “beyond screens.”
New AI Device Details Emerge
OpenAI and Ive are collaborating on a screenless, compact AI device, described as a “third core device” and an “AI companion,” envisioned for a late 2026 release, with mass production potentially starting in 2027. The device will be pocket-sized and contextually aware, fully aware of its user’s surroundings, and may lack a screen. It may be wearable, possibly worn around the neck, equipped with a built-in camera and microphone for environmental detection, and capable of connecting to smartphones and PCs. OpenAI CEO Sam Altman believes this partnership could significantly increase the company’s value, potentially adding $1 trillion in market value, and envisions a “family of devices” emerging. He also hopes that AI hardware opens up an “embarrassment of riches of what people go create for collectives society.” The goal is to reduce screen dependency and move away from screens, learning from the iPhone’s “unintended consequences.” The io team will report to Peter Welinder, OpenAI’s vice president of product.
Strategic Implications and Competition
This move aims to enhance OpenAI’s hardware operations amid competition from Google, Anthropic, and xAI. OpenAI, backed by Microsoft, was recently valued at $300 billion and has agreed to share 20 percent of its revenue with Microsoft until 2030 in return for the more than $13 billion the tech giant has invested into it. Apple executives, including Eddy Cue, have acknowledged that AI devices might replace the iPhone within a decade.
Refer Link
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