OpenAI mulls taking over Jony Ive's AI startup for $500 million

Sam Altman's OpenAI has discussed acquiring Altman and Jony Ive's startup firm that is designing at least one household AI device.

Jony Ive left Apple in 2019 to found his own design company, LoveFrom, and has since hired many ex-Apple staff, including his own replacement, Evans Hankey. Ive also hired ex-Apple design lead Tang Tan specifically to work on the AI startup collaboration with Sam Altman.

Now according to The Information, this startup is called "io Projects," and OpenAI has discussed buying it outright for at least $500 million. If this happens, OpenAI would acquire the AI designs plus the engineers who are working on it.

It's not clear, though, whether an OpenAI acquisition would also see it taking on either Tang Tan or Evans Hankley.

Previously, it was reported in 2024 that Ive had been looking for investors to provide funding of $1 billion for the unknown device, or devices. Subsequently, Laurene Powell Jobs is said to have invested an unknown sum through her Emerson Collective, as have other companies.

In 2023, it was reported that Ive and Sam Altman had been meeting to discuss what was described as the iPhone of AI. It meant the AI device that would be as transformative and universally used as the iPhone, but it's been misinterpreted as meaning Ive is working on an AI phone.

That perception continues with this new report, which cites some unspecified sources as specifically saying that Ive's device is a phone without a screen. However, it also cites other sources as being adamant that it is not a phone.

What appears to be sure is that the device is intended to be used as a voice assistant. It's being designed by Ive and his new startup, io Products, with help from LoveFrom, and is seemingly getting AI from Altman's OpenAI.

Altman has also been described as being deeply involved, but was not a founder. It isn't known whether he has personally invested in the firm.

As well as an outright acquisition, OpenAI is said to be considering a partnership with the startup.

If Ive's new AI device is a device with a voice assistant, it would be entering a market that has changed significantly since his first discussions with Altman in 2023. Since then, Apple has famously promised a radically improved version of Siri, but Amazon has also announced an AI-powered new version of Alexa.