OpenAI in talks to acquire former Apple design chief Jony Ive’s AI startup for $500M

ChatGPT-maker OpenAIis reportedly negotiating to acquire io Products, an AI hardware startup co-founded by former Apple design chief Jony Ive and OpenAI CEO Sam Altman. The potential deal could exceed $500 million, reports The Information.

io Products is reportedly building AI-enabled consumer devices, including a screenless phone and smart home gadgets. 

The acquisition would allow OpenAI to diversify its revenue streams beyond its current core offerings, which include ChatGPT and API services for developers.

Additionally, besides talks of acquisition, the report says that OpenAI is also exploring partnerships with io Products, which currently has a small team including former Apple designers Tang Tan and Evans Hankey. 

Ive, known for his role in designing Apple products such as iPhone, iPod, and Mac, left the company in 2019 to start his own design consultancy, LoveFrom. He publicly confirmed his collaboration with Altman on the new venture in an earlier interview with The New York Times.

The duo have already gained early-stage investment for the startup, including backing from Laurene Powell Jobs, the widow of Apple co-founder Steve Jobs. The total funding was projected to reach $1 billion by the end of last year, the report added. 

In 2023, Altman backed a funding round for Humane Inc, an AI wearable startup known for its screenless brooch that uses a miniature projector to display content on the user’s palm. The company raised over $200 million from several investors, including Microsoft, Altman, and Salesforce CEO Marc Benioff. Earlier this year, HP acquired some of Humane's assets for $166 million.