According to reports, Openai is reportedly considering a deal to buy IO products, a hardware startup that wants to make AI devices, up to $500 million. The IO product took shape about two years ago and involved several well-known technicians, including OpenAI CEO Sam Altman and former Apple (AAPL) designer Jony Ive. It also caught the attention of Steve Jobs's widow, Laurene Powell Jobs.
The startup, which was introduced by Airbnb (ABNB) CEO Brian Chesky, Altman's close friend, who previously worked with Ive's Design Studio Lovefrom, was enjoying Apple for nearly three decades at Apple shortly after leaving in 2019, in honor of the company's unique stylish beauty.
According to the information, many engineers from Apple working with IVE are responsible for building consumer devices for IO products that can help users with daily tasks. Meanwhile, Openai is providing this technology. Current staff on the project include employees like Tang Tan and Evans Hankey, who previously led the design of iPhone products, who previously took over Ive's leadership of design at Apple. The information states that it is not clear whether Tanning and Hankey will join Openai if a potential acquisition occurs.
It's still a mystery to see what IO products are developing. The joint venture has been silent on its plans for an AI-powered personal product that could be reportedly in the shape of a home device. To be sure: it won't be a traditional smartphone. “I don’t think you should try to make a better phone,” Altman told Axios of the project last year.
IO products are supported by IVE itself and technology investors such as Emerson Collective, an investment company founded by Steve Jobs's legacy Laurene Powell Jobs. As of September last year, the startup was reportedly extending to raise up to $1 billion by the end of 2024.
Since its rise to mainstream technology in 2022, Openai has been working hard to expand more than just making AI models. In addition to exploring potential web browser products that may compete with Google, the company is currently completing designs for its own in-house AI chips to reduce its reliance on NVIDIA (NVDA). Openai hopes to start mass production of these chips at Taiwan Semiconductor Manufacturing Corporation (TSMC) next year. TSMC is also made Nvidia and Apple's bargaining chips.
