OpenAI is reportedly considering a high-profile acquisition that could transform the landscape of AI-powered hardware. The artificial intelligence company, led by CEO Sam Altman, is in talks to acquire a startup founded by Altman himself along with iconic former Apple design chief Jony Ive. This AI hardware startup, currently operating under the name “io Products,” may be valued at around $500 million, marking a significant step in OpenAI’s ambition to extend its reach beyond software and into the realm of physical devices.
This potential acquisition reflects OpenAI’s commitment to embedding artificial intelligence more deeply into everyday life through sleek, innovative, and accessible hardware.
The Birth of io Products: A Fusion of Design and Intelligence
Sam Altman and Jony Ive began collaborating on the AI hardware project in 2023. Their partnership emerged from a shared vision to revolutionize how people interact with technology. Brian Chesky, CEO of Airbnb and a mutual friend of both, reportedly played a key role in bringing them together. They envisioned creating hardware that integrates AI not just for novelty but for real utility—something intuitive, human-centered, and unlike anything else on the market.
Jony Ive brought with him years of unparalleled design expertise, having shaped some of Apple’s most successful products, including the iPhone, iPad, iMac, and Apple Watch. His influence on product aesthetics and user experience remains legendary. When he left Apple in 2019, the tech industry watched closely to see where his next creative energy would flow.
In founding io Products, Ive and Altman sought to go beyond the traditional model of hardware development. They focused on blending AI with design in a way that would feel natural, subtle, and deeply integrated into users’ lives.
A Powerhouse Team Assembles
To bring their vision to life, the duo assembled a team of experienced talent, many of whom came from Apple. Tang Tan, who previously led the iPhone product design team, joined the startup to help shape the device’s form and functionality. Evans Hankey, another Apple veteran and Ive’s successor in Apple’s hardware design department, also became part of the initiative.
This team does not just bring technical skills; they carry the DNA of Apple’s product culture—attention to detail, premium design, and user-first philosophy. With this talent pool, io Products is developing devices that aim to shift how people perceive and use everyday technology.
What Kind of Product Are They Building?
While the company has kept most details under wraps, industry insiders suggest that io Products is developing AI-driven devices that may look and function radically different from smartphones. One concept reportedly involves a “phone” without a traditional screen—relying instead on voice, AI interpretation, and perhaps wearable or environmental sensors.
Rather than replicating smartphones, the product could replace them for many core tasks. For instance, it might help users plan trips, book appointments, or identify objects—like plants or landmarks—on the spot using voice commands and AI reasoning. This new class of hardware would prioritize contextual intelligence over touchscreen navigation.
Their approach aims to reduce digital distractions and dependency on screens while making the experience more seamless and intelligent.
Why OpenAI Wants This Startup
OpenAI has become one of the most influential players in artificial intelligence, thanks to products like ChatGPT. However, the company has largely remained a software powerhouse. With this potential acquisition, OpenAI wants to step firmly into the consumer hardware space.
Sam Altman believes that for AI to fulfill its potential, it must live inside devices that are more thoughtfully designed. By acquiring io Products, OpenAI would gain access not only to cutting-edge design but also to an already developed product pipeline and experienced engineers with a proven track record.
This move would allow OpenAI to control both the AI software and the hardware interface—giving it end-to-end control over the user experience.
More importantly, this acquisition could position OpenAI as a direct competitor to Apple, especially in the realm of AI-powered personal devices. Apple has long led the industry in terms of hardware elegance and ecosystem design. OpenAI, with its software capabilities and Jony Ive’s hardware vision, could create a serious alternative.
The Strategic Stakes
OpenAI understands that the future of artificial intelligence will depend on how people interact with it. AI models can become smarter and more capable, but without intuitive access points, adoption could stagnate. That’s why the company wants to build devices that integrate AI into people’s lives without friction.
This acquisition also comes at a time when Apple has faced delays in bringing major AI improvements to Siri and other parts of its ecosystem. OpenAI may view this as an opportunity to seize the moment and offer an alternative built from the ground up around AI—not retrofitted into existing devices.
The deal’s size—reportedly $500 million—demonstrates OpenAI’s serious intention to invest in consumer-facing AI. OpenAI has raised billions of dollars in funding recently, and this move would represent one of its most ambitious plays to date.
Broader Market Implications
If OpenAI completes the acquisition, the entire tech industry could see a shift in how hardware and AI interact. For years, companies have treated AI as a software feature to enhance existing products. OpenAI and io Products are taking a different approach. They are designing the hardware around AI, treating it as the core function, not an add-on.
This development may prompt other players—Google, Amazon, Meta, and even Apple—to rethink their hardware strategies. It could also accelerate a trend where users move away from screen-based interfaces and embrace more ambient, voice-driven, or gesture-based interactions.
Startups and developers might follow this trend and build accessories, platforms, and ecosystems around these new AI-powered devices, fueling innovation across sectors including wearables, smart homes, and personal productivity tools.
What’s Next?
OpenAI has not officially confirmed the acquisition, and details remain in flux. However, multiple reports suggest that negotiations are at an advanced stage. If the deal closes, OpenAI will likely unveil its first hardware product within the next year—possibly even sooner, given the progress io Products has made.
As this story develops, tech watchers, investors, and users alike are waiting to see how this new collaboration between design and AI unfolds.
Conclusion
OpenAI’s move to acquire Jony Ive’s startup marks more than just a business transaction—it signals a shift in the philosophy of product design. The company no longer wants to remain a background player powering apps and chatbots. It wants to create devices that people touch, wear, and live with. Devices that understand them, serve them, and stay out of the way.
By bringing together Sam Altman’s vision for artificial intelligence and Jony Ive’s iconic sense of design, OpenAI is preparing to redefine how we experience technology. And in doing so, they might just shape the next decade of digital life.