AI iPhone on the Horizon? Sam Altman and Jony Ive Join Forces to Build the Future of Intelligent Devices

In a move that could redefine the future of consumer technology, OpenAI CEO Sam Altman and legendary Apple designer Jony Ive are teaming up to build a groundbreaking AI device—something the tech world is calling the "AI iPhone" Apple never made. This collaboration could mark the start of a new era in AI-powered hardware.

OpenAI Acquires Jony Ive’s Startup ‘io’ for $6.5 Billion

On May 22, 2025, OpenAI officially announced the acquisition of ‘io,’ a design-focused AI hardware startup co-founded by Jony Ive in 2023. The total acquisition deal is valued at a staggering $6.5 billion (around ₹55,700 crore). OpenAI had already acquired a 23% stake in the company last year and is now paying an additional $5 billion to take full ownership.

Despite the acquisition, LoveFrom, Jony Ive’s renowned design firm, will remain independent and continue to oversee the design of all future OpenAI devices. This means OpenAI will now not only lead in software but will soon have a complete in-house design ecosystem, guided by one of the most visionary product designers of our time.

What’s in the Works?

Although the project remains unnamed, reports suggest that Sam Altman and Jony Ive have been working on this secretive AI device for over two years. OpenAI has hinted at a "family of devices," but no technical specifications or product features have been disclosed so far.

Interestingly, insiders suggest that this device won’t be a traditional smartphone. Instead, it’s likely to be an intelligent companion—a product that complements your digital life without relying heavily on a screen. Ive has expressed his distaste for screen dependency in the past, which fuels speculation that the device could have minimal or even no screen at all.

This design philosophy might echo the recently launched Humane AI Pin and Rabbit R1, both of which attempted screen-free AI-first experiences but failed due to execution flaws. However, with OpenAI’s software prowess and Ive’s hardware genius, the new device could avoid those pitfalls.

Why This Matters

This partnership could be a game-changer for OpenAI. Until now, the company has focused entirely on software, becoming a household name with its ChatGPT platform—now boasting an estimated 400–800 million weekly active users as of May 2025. But as AI rapidly evolves, owning the hardware platform becomes crucial to deliver deeply integrated, seamless experiences.

As Steve Jobs once said, “Companies that make great software should build their own hardware.” OpenAI seems to be taking that advice to heart.

By building its own devices, OpenAI can:

• Fully control user experience
• Minimize reliance on rival hardware platforms
• Set new standards for AI-device interactions

This move positions the company to challenge giants like Apple, Google, and Amazon in the hardware space, particularly at a time when those companies have yet to fully crack AI-native design.

What to Expect and When

Although full product details remain under wraps, OpenAI confirmed that the first device in this new AI family is expected to launch by late 2026. Given the timeline and the names involved, expectations are sky-high.

OpenAI’s ambition, combined with Jony Ive’s mastery of minimalist, user-centric design, could result in a product that disrupts the tech landscape—just as the iPhone did in 2007.

Final Thoughts

This could be OpenAI’s “iPhone moment.” While it might not replace your smartphone outright, it could usher in a new generation of context-aware, intelligent companions that seamlessly integrate AI into everyday life.

Whether you're a tech enthusiast, industry analyst, or simply curious about where AI is headed, this partnership is worth watching. With the vision of Sam Altman and the design genius of Jony Ive, the world might soon witness a product that’s more than just smart—it could be the most elegantly intelligent device ever made.