Altman/Ive AI Device Startup Purchase Talked About by OpenAI

Sam Altman collaborated with the firm of former Apple designer Jony Ive to create a personal gadget that used artificial intelligence (AI). The Information reported on Sunday, April 6, that OpenAI has been considering a transaction in recent weeks that might involve a group of engineers working on the device at the business, called io Products.

According to the report, OpenAI once contemplated paying at least $500 million for the acquisition.

The source also mentions AI-enabled household devices and a “phone” without a screen as designs for io Products’ AI device. These designs are still in their early stages and have not yet been completed, though.

According to The Information, this acquisition would broaden OpenAI’s rapidly growing product line, which already includes humanoid robots, AI server chips, and software that can manage users’ web browsers.

According to the source, this could also put OpenAI in more competitive competition with Apple, one of its main AI partners, and help the company get its technology in front of more people. PYMNTS has reached out to OpenAI for comment, but has not received a response as of yet.

It was first reported in the fall of 2023 that Altman and Ive were working on an AI device. The two seemed to be attempting to use AI to replicate the success of the iPhone and App Store, as reported at the time.

According to that research, “Apple’s business model has always emphasized a tight integration between hardware and software.”

In addition to enabling the growth of subscription-based pricing models for apps and content, which let users pay on a regular basis for access to premium services or content, this strategy allowed Apple to maintain control over both the device and the operating system, guaranteeing a consistent and user-friendly experience.

In other OpenAI news, it was reported last week that the business’s plan to restructure into a for-profit company was a requirement for billions of dollars in funding.

According to a source, the firm is wrapping up a $40 billion investment deal with a clause that might reduce the round by $20 billion if it doesn’t finish the restructure by the end of the year.

According to a Another report,, the clause would lower the funding round from $40 billion to $30 billion, a $10 billion reduction. Both the California attorney general and Microsoft, its biggest shareholder, must approve the reorganization. Elon Musk, who was involved in the company’s founding, is also suing OpenAI in an effort to stop the reorganization.