Former Apple design chief Jony Ive may be back in the hardware game—this time with artificial intelligence at the center. Reports suggest that OpenAI is considering acquiring io Products, a hardware startup co-founded by Ive and OpenAI CEO Sam Altman, in a deal reportedly valued at over $500 million.
While details are still limited, the project is rumored to involve the development of AI-powered consumer devices, possibly including a screenless phone-like product. Though sources stress that it is “not a phone,” the concept behind it could offer a new kind of interaction model—potentially a step forward from traditional smartphones.
The startup has attracted attention not just for its founders but also for its backers. Emerson Collective, led by Laurene Powell Jobs, is one of the investors. The team includes former Apple designers such as Tang Tan and Evans Hankey, both of whom worked closely with Ive during the iPhone era.
The proposed acquisition could result in more of a partnership than a full takeover. OpenAI would retain its AI capabilities, while Ive’s design firm, LoveFrom, would lead the industrial design and user experience aspects. This model would allow OpenAI to bring its AI advancements into a consumer device without building a hardware division from scratch.
While AI devices like the Humane AI Pin and Rabbit R1 received mixed or poor reception, this new collaboration signals that the next generation of AI hardware could come with more thoughtful design and potentially fewer compromises. It also marks Jony Ive’s return to consumer tech hardware after several high-profile design projects outside the tech space.
Although the product itself is still in the conceptual phase, the idea of a purpose-built AI device—one that moves away from screens and apps as we know them—has already raised industry expectations. If the collaboration progresses, it could result in a new kind of hardware ecosystem, blending AI-first computing with minimalist design principles.
For now, there’s no prototype or confirmed launch timeline, but the alignment of AI expertise and high-end design suggests OpenAI may be preparing to enter the hardware market with something ambitious—possibly as disruptive as the first wave of smartphones.
