OpenAI is reportedly in the talks to acquire a stealth mode AI startup founded by its own CEO Sam Altman, and Apple designer John Ive. According to a report by The Information, this potential deal is worth $500 million.
This startup, named io Products, was founded in 2024 and remained under the radar while developing AI-powered hardware products. Sources say that OpenAI is either planning for an acquisition or a strategic partnership with the aim of integrating the venture’s product engineering team into its ecosystem.
The Information’s report notes that OpenAI may end up partnering with io Products which currently has a small team that includes former Apple designers Tang Tan and Evans Hankey. io Products has reportedly been working on different concepts of AI-enabled devices, including smart home gadgets.
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The startup is reportedly planning for a range of different devices, including a screenless phone-like product that reimagines human-computer interaction through AI. The design efforts are led by Ive, who was the creative force behind the iPhone. While early concepts draw on the minimalist ethos of the iPhone, they are expected to diverge in function and purpose.
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The collaboration between Altman and Ive was facilitated by Airbnb CEO Brian Chesky, one of the early clients of Ive’s firm Lovefrom.
Jony Ive is a British-American designer who is best known for working on the design of various products including iMac, Power Mac G4 Cube, iPod, iPhone, iPad, MacBook, and the user interface of Apple’s mobile operating system iOS. He was also responsible for the design of major architectural projects including Apple Park and Apple Stores. He left Apple in 2019 to start Lovefrom, a design firm.
This move comes shortly after OpenAI closed a thumping $40 billion funding round this month, the largest ever for a tech firm.