Summary:
OpenAI considers acquiring io Products, co-founded by Jony Ive.
Potential deal could exceed $500 million.
io Products developing AI-powered technologies including a screenless phone.
Funding expected to reach $1 billion with backing from Laurene Powell Jobs.
Strategic partnerships could enhance OpenAI's position in the evolving AI market.
OpenAI is reportedly considering acquiring io Products, an AI startup co-founded by Apple design chief Jony Ive and OpenAI CEO Sam Altman. The potential deal could exceed $500 million.
io Products is working on a range of AI-powered technologies, including a screenless phone concept and smart home devices, although the company denies any current phone development.
The initiative was first reported by the New York Times in September, where Ive expressed his vision for an AI-driven device that aims to be "less socially disruptive than the iPhone."
Ive and Altman have reportedly secured early-stage funding from investors, including Laurene Powell Jobs, and aim to reach $1 billion in funding.
In addition to acquisition discussions, OpenAI is also exploring strategic partnerships with the startup, which would give them access to both the technology and engineering team.
The AI voice assistant landscape is rapidly evolving, and a partnership with a hardware company could strengthen OpenAI's position within this competitive market.
Ive's design firm, LoveFrom, is leading the device's development, supported by a team that includes former Apple executives.
'Maintain its lead'
Jitesh Ubrani from IDC stated that this move would help OpenAI expand across various platforms and maintain its lead in device innovation.
The risk in waiting
Dipanjan Chatterjee from Forrester highlighted the risks of waiting for a major redesign, as the current iPhone design has seen little change recently. He noted that the temptation to delay upgrades could prolong the upgrade cycle for consumers.
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