In a strategic move signaling its expansion beyond software, OpenAI is reportedly negotiating a $500 million acquisition of io Products, an AI hardware startup co-founded by former Apple design chief Jony Ive and OpenAI CEO Sam Altman.
This potential acquisition marks a major shift for OpenAI, best known for its software innovations like ChatGPT and API tools. By investing in physical products, the company is aiming to diversify its revenue streams and establish a foothold in AI-powered consumer tech.
AI Devices Without Screens
io Products is believed to be developing next-gen devices like screen less smartphones and ambient smart home gadgets. The startup’s approach challenges traditional tech norms by offering context-aware, screen-free interaction, positioning AI as a more natural extension of the user experience.
The team behind io Products includes several former Apple veterans, including Tang Tan and Evans Hankey, adding design credibility to the venture. The startup reportedly drew early backing from high-profile investors, including Laurene Powell Jobs, and is expected to hit $1 billion in funding by the end of 2024.
Jony Ive and Altman’s Vision
Jony Ive, celebrated for his iconic designs at Apple, launched LoveFrom in 2019 and later teamed up with Altman to reimagine consumer tech through io Products. Their goal: create devices that blend into everyday life, with AI at the core of user interaction.
OpenAI’s interest in io Products follows Altman’s past ventures into AI hardware, including Humane Inc., which was recently acquired by HP for $166 million. However, this new move suggests OpenAI might finally take a hands-on approach to consumer hardware rather than simply investing from the sidelines.
If finalized, the deal could reshape how users interact with AI in daily life, marking a significant milestone in the fusion of software intelligence and human-centered design.
