OpenAI, led by CEO Sam Altman, is reportedly in discussions to acquire io Projects, an artificial intelligence startup co-founded by Altman and renowned designer Jony Ive, for a sum of at least $500 million. This potential acquisition would encompass the startup’s AI designs and its team of engineers.
Background on io Projects
Jony Ive, Apple’s former Chief Design Officer, departed the company in 2019 to establish his own design firm, LoveFrom. Since its inception, LoveFrom has attracted several ex-Apple employees, including Evans Hankey, who succeeded Ive at Apple, and Tang Tan, a former Apple design lead. Tan was specifically recruited to contribute to the AI startup collaboration with Altman.
The startup, now identified as io Projects, has been working on developing at least one household AI device. In 2024, reports indicated that Ive was seeking $1 billion in funding for this venture. Laurene Powell Jobs, through her organization Emerson Collective, is among the investors who have contributed an undisclosed amount to the project.
Nature of the AI Device
The exact nature of the device being developed by io Projects remains a topic of speculation. Some sources suggest it could be a screenless phone, while others assert it is not a phone at all. What is clear is that the device is intended to function as a voice assistant, leveraging OpenAI’s advanced AI capabilities. The design is being spearheaded by Ive and his team at io Projects, with support from LoveFrom.
OpenAI’s Strategic Considerations
OpenAI’s interest in acquiring io Projects aligns with its broader strategy to integrate AI into consumer hardware. By bringing io Projects under its umbrella, OpenAI would gain access to innovative AI designs and a team of experienced engineers. However, it remains uncertain whether key figures like Tang Tan or Evans Hankey would transition to OpenAI as part of the acquisition.
Alternatively, OpenAI is also contemplating a partnership with io Projects instead of a full acquisition. This approach would allow both entities to collaborate closely while maintaining their respective operational independence.
Market Context
The AI voice assistant market has evolved significantly since initial discussions between Ive and Altman in 2023. Apple has announced plans for a radically improved version of Siri, and Amazon has introduced an AI-powered iteration of Alexa. In this competitive landscape, the success of io Projects’ device will depend on its ability to offer unique features and a compelling user experience.
Conclusion
OpenAI’s potential acquisition of io Projects for $500 million underscores the growing convergence of AI and consumer hardware. As the AI voice assistant market becomes increasingly competitive, strategic moves like this could position OpenAI to play a pivotal role in shaping the future of AI-driven consumer devices.
