Sam Altman’s OpenAI mulls buying ex-Apple design guru Jony Ive’s AI device startup for $500M: report

Sam Altman’s OpenAI is reportedly considering acquiring io Products, a startup run by former Apple design icon Jony Ive, for at least $500 million. The potential acquisition would include the integration of a design team working on a cutting-edge AI-powered hardware device, a collaboration between Altman and Ive since 2023. This device, described as a 'personal device,' remains without a final design, with some speculating it could be an AI-powered smartphone without a screen. OpenAI's recent $40 billion financing round at a $300 billion valuation could facilitate the acquisition, which would pit the company directly against Apple in the AI hardware space. Ive, who left Apple in 2019 to start his design firm LoveFrom, has been working informally with Altman but is not a co-founder of io Products.
The context of this potential acquisition highlights the strategic move by OpenAI to expand its presence in the AI hardware market amid competition with Apple, which has faced challenges in AI feature integration. The involvement of key ex-Apple executives in io Products underscores the startup's ambition and potential to innovate in this space. With Altman and Ive’s collaboration aiming to surpass traditional smartphone capabilities, the implications of this deal could redefine personal technology and challenge existing market dynamics. Apple's recent struggles with AI feature implementation, particularly the delayed AI overhaul for Siri, further accentuate the competitive landscape in which OpenAI seeks to assert itself.
RATING
The article provides a well-rounded account of a significant development in the tech industry, focusing on OpenAI's potential acquisition of io Products. It scores highly in accuracy and timeliness, reflecting its reliance on credible sources and relevance to current industry trends. However, it could improve in transparency by providing more context about its sources and potential conflicts of interest. The article is clear and engaging, though it could benefit from more diverse perspectives and detailed information about the AI device. Overall, it effectively informs readers about an important topic while leaving room for further exploration and discussion.
RATING DETAILS
The story is largely accurate, with most claims supported by credible sources. For instance, the report that OpenAI is considering acquiring io Products for at least $500 million is consistent with multiple reports, including those from The Information. Jony Ive's departure from Apple and his subsequent collaboration with Sam Altman on an AI hardware project are also well-documented. However, the exact nature of the AI device remains unclear, with conflicting descriptions about whether it resembles a smartphone or not. This ambiguity suggests that while the core facts are accurate, some details require further verification.
The article provides a balanced view of the potential acquisition, discussing both the strategic interests of OpenAI and the innovative contributions of Jony Ive. However, it could benefit from including more perspectives, such as potential impacts on competitors like Apple or reactions from industry analysts. The focus is primarily on the collaboration between Altman and Ive, which may overshadow other relevant viewpoints, such as those of io Products' other stakeholders or potential market implications.
The article is generally clear and well-structured, with a logical flow of information. It effectively outlines the key points of the potential acquisition and the collaboration between Altman and Ive. However, the description of the AI device's nature is somewhat ambiguous, with conflicting reports about whether it resembles a smartphone. This lack of clarity could confuse readers and detracts slightly from the overall coherence of the piece.
The sources cited in the article, such as The Information, are reputable and known for their in-depth tech industry reporting. The use of direct knowledge from sources adds credibility, though the anonymity of these sources could be a limitation. The article would benefit from a broader range of sources to corroborate the claims, such as official statements from OpenAI or io Products, which would enhance the reliability of the information presented.
The article lacks transparency in certain areas, particularly regarding the sources of its information. While it cites 'sources with direct knowledge,' it does not provide enough context about these sources' reliability or potential biases. Additionally, the article does not disclose any potential conflicts of interest or the methodology behind the reported figures, such as the $500 million valuation. Greater transparency about these aspects would improve the article's credibility.
Sources
- https://observer.com/2025/04/openai-sam-altman-jony-ive-hardware-startup/
- https://www.cnet.com/tech/services-and-software/chatgpt-screenless-phone-incoming-openai-reportedly-eyeing-jony-ives-ai-startup/
- https://9to5mac.com/2025/04/07/jony-ives-new-ai-product-is-not-a-phone-but-might-work-like-one/
- https://appleinsider.com/articles/25/04/07/openai-mulls-taking-over-jony-ives-ai-startup-for-500-million
- https://www.theinformation.com/articles/openai-discussed-buying-jony-ive-sam-altmans-ai-device-startup
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