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Acquisition Could Mark OpenAI’s Entry into the Hardware Market and Open Direct Competition with the iPhone in the Future
In recent years, OpenAI has emerged as a frontrunner in the race for artificial intelligence, especially following the success of ChatGPT. But Sam Altman, the company’s CEO, is not satisfied with merely dominating the software world. His next step is even more ambitious: to create a physical device with AI technology that could change the way we interact with the digital world — and perhaps even compete with the iPhone.
This idea, which seems straight out of a futuristic movie, is taking on real shape. Since 2023, Altman has been working alongside Jony Ive, the legendary designer responsible for some of Apple’s most iconic products, such as the iPhone, iMac, and iPod.
Now, the partnership could reach a new level with the possible purchase of the startup io Products, a company created by Ive to develop this new smart device.
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A New Type of Personal Device
Despite the secrecy surrounding the project, some information has begun to emerge.
The product, still without an official name or final design, is described by sources as a personal device with artificial intelligence.
Some compare it to a smartphone without a screen. Others insist that “it’s not a phone.” The confusion may be intentional: Altman and Ive seem to want to create something entirely new, going beyond the logic of current smartphones.
The proposal is that the device will be capable of performing everyday tasks autonomously with the help of AI. This includes everything from booking a trip to identifying a plant through an image. All in a fluid manner, without relying on multiple apps, clicks, or typings.
The promise is a leap in human-machine interaction — something more intuitive, direct, and centered on natural language.
OpenAI Seeks to Buy io Products for US$ 500 Million
According to recent information published by The Information, OpenAI is considering a full acquisition of io Products, the company created by Ive to develop this new type of hardware. The value of the deal could exceed US$ 500 million.
The acquisition would not only bring control of the project into OpenAI but also integrate the entire design team involved, including heavyweights from Apple.
Two of them have already been confirmed: Tang Tan, who led the design teams for the iPhone and Apple Watch, and Evans Hankey, who succeeded Ive as head of design at Apple and left the company in 2023. This shows that the project is not just an experimental idea — it is a concrete initiative, with experienced talents and a clear vision.
A Response to Apple’s Slowness?
Coincidentally or not, as Altman and Ive advance with their AI device, Apple faces internal difficulties in implementing advanced artificial intelligence features in its products.
In March of this year, the head of the team responsible for the digital assistant Siri described the delay in updates as “ugly,” admitting that there is embarrassment among employees.
Apple had promised a revamp of Siri with more powerful AI, but the launch was delayed due to technical issues. This could create an opportunity for OpenAI to enter the market with a more innovative and efficient product.
Although direct competition between the two companies has not yet been officially confirmed, Altman’s moves indicate that he is eyeing this vacuum left by the Cupertino giant.
A Partnership with Deep Roots
Jony Ive left Apple in 2019 to found his own design company, LoveFrom. Since then, he had been keeping a low profile. It was only in 2023 that he revealed in an interview with New York Times that he was collaborating with Altman on an AI hardware project.
For Sam Altman, the choice of Ive was not by chance. The designer is known for his ability to elegantly combine form and function, creating desirable and intuitive products.
Altman believes that this perspective will be essential for the new device to be both practical and beautiful, as well as revolutionary.
Global Ambitions
Alongside the hardware project, Altman is also leading other efforts to strengthen OpenAI’s infrastructure.
He announced a partnership with SoftBank and Oracle to build an AI ecosystem in the United States, dubbed Stargate. The plan involves an investment of US$ 500 billion for the creation of data centers and possibly even custom chips.
Altman has also been seeking international collaborations. During a recent visit to Japan, he discussed partnerships with local companies for the development of semiconductors and other critical technologies.
The goal is clear: to ensure that OpenAI remains competitive in a global landscape dominated by players like China, Google, Amazon, and, of course, Apple.
A Bold Bet
The creation of a new AI device, with the ambition to compete with the iPhone, is a risky bet. Many have tried to challenge the dominance of smartphones and failed.
However, few possess the combination of resources, talent, and vision that Altman and Ive bring to the table.
Moreover, the timing seems right. Artificial intelligence is becoming increasingly present in people’s lives, and there is a growing demand for solutions that make this interaction more natural.
If OpenAI’s project can deliver on its promises, it could redefine not only the technology market but also the way we relate to the digital.
And Now?
So far, neither OpenAI nor io Products has officially commented on the potential acquisition or the product in development. Nevertheless, the mere fact that this conversation is happening is already stirring the industry.
With over US$ 40 billion in new funding and a valuation of US$ 300 billion, OpenAI has the resources and momentum to attempt something big. The question remains whether this “personal AI device” will truly be the next great revolution — or just another ambitious concept that never came to fruition.
But given who is behind the idea, it is worth paying attention.
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