OpenAI is eyeing a $500 million acquisition of Jony Ive’s startup io Projects for AI device development
Sam Altman’s OpenAI is reportedly in talks to buy Jony Ive’s startup io Projects, which is working on at least one household AI device.
The former Apple design chief has been collaborating with the ChatGPT creator on this project, but now it seems Altman may want to bring the company in-house and acquire it.
The price tag? At least $500 million, according to a new report. That’s a figure that’s been floated before in relation to other potential acquisitions involving the OpenAI brand.
Ive, who left Apple in 2019 to set up his design firm LoveFrom, has hired a number of former Apple employees to work on this collaboration with Altman. That includes Evans Hankey and Tang Tan. It remains unclear whether either of them would be part of the deal if it goes through, but it was reported previously that Ive sought $1 billion in funding for the project.
Laurene Powell Jobs and other investors have contributed undisclosed amounts, although it’s not clear whether that will fully cover the costs involved in launching the company.
The project has been on the cards since early 2023, with discussions between Ive and Altman revolving around creating an AI device that would be as transformative as the iPhone.
That idea has been misreported as an AI phone, but it was never intended to be taken literally. However, recent reports have suggested conflicting views on whether the device is a phone or not. Some say it’s a screenless phone while others say it isn’t a phone at all.
What is clear is that it’s designed to be a voice assistant, with io Projects handling the design work, LoveFrom providing support, and OpenAI supplying the technology.
Altman is heavily involved in the project, but he isn’t the founder of this startup, and it’s not clear whether he has made a personal investment in it.
In addition to a potential acquisition, OpenAI is also considering a partnership with io Projects.
Since those early discussions between Ive and Altman, the market for voice assistant devices has changed quite dramatically. Apple is promising a revamped Siri, while Amazon has introduced an AI-enhanced version of Alexa.
