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OpenAI Reportedly Discussed Purchasing Altman/Ive AI Device Startup | PYMNTS.com

Apr 07, 2025 - pymnts.com
OpenAI is reportedly considering acquiring io Products, a startup connected to its CEO Sam Altman, which is working on an AI-powered personal device in collaboration with former Apple designer Jony Ive’s studio. The potential acquisition, valued at over $500 million, could include a team of engineers developing designs such as a screenless "phone" and AI-enabled household devices. This move would expand OpenAI's product offerings and increase its competition with Apple. The acquisition could also help OpenAI bring its technology to more consumers.

In other developments, OpenAI is finalizing a $40 billion funding round, contingent on restructuring into a for-profit entity by the end of the year. Failure to do so could reduce the funding by $10 to $20 billion, depending on reports. This restructuring requires approval from Microsoft, its largest shareholder, and the California attorney general. Additionally, Elon Musk, a co-founder of OpenAI, is suing to halt the restructuring.

Key takeaways:

  • OpenAI is considering acquiring io Products, a startup connected to its CEO Sam Altman, to develop AI-powered personal devices.
  • The potential acquisition could be valued at least $500 million and aims to expand OpenAI's product offerings and consumer reach.
  • OpenAI is finalizing a $40 billion funding round contingent on restructuring into a for-profit entity, with potential reductions if not completed by year-end.
  • Elon Musk is suing to halt OpenAI's restructuring, which requires approval from Microsoft and the California attorney general.
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