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OpenAI could reportedly acquire Jony Ive’s AI device startup for $500M+ - SiliconANGLE

Apr 07, 2025 - siliconangle.com
OpenAI is reportedly considering acquiring io Products, a consumer electronics startup led by former Apple Chief Design Officer Jony Ive, for over $500 million. The startup is believed to be developing a screenless, AI-powered device, possibly a phone-like product, although details remain unclear. OpenAI may also explore a partnership instead of a full acquisition. Entering the consumer electronics market could provide OpenAI with a new revenue stream, complementing its existing income from ChatGPT and developer APIs.

Jony Ive, known for designing iconic Apple products like the iPhone and iPod, left Apple in 2019 to start the design studio LoveFrom, which may or may not be affiliated with io Products. Both LoveFrom and io Products have been rumored to explore AI-equipped consumer devices. OpenAI CEO Sam Altman has shown interest in screenless AI devices, having previously backed Humane Inc., which developed an AI-powered brooch. OpenAI's potential entry into consumer electronics could involve developing lightweight AI models that operate locally on devices, enhancing functionality without relying on constant internet connectivity.

Key takeaways:

  • OpenAI is reportedly considering acquiring Jony Ive's startup, io Products, for over $500 million, but may opt for a partnership instead.
  • io Products is believed to be developing a screenless, AI-powered device, possibly a phone-like product, and may also explore AI-powered smart home appliances.
  • Jony Ive's design studio, LoveFrom, has reportedly considered building an AI-equipped consumer device and may seek $1 billion in funding from SoftBank Group Corp.
  • Acquiring io Products could enable OpenAI to diversify its revenue streams beyond ChatGPT and developer APIs by entering the consumer electronics market.
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