OpenAI is reportedly in talks concerning a potential acquisition of a new artificial intelligence (AI) startup co-founded by CEO Sam Altman and renowned designer Jony Ive. The startup, which remains unnamed, was established last year and is currently focused on developing AI-driven devices. Among its projects is a design allegedly inspired by the original iPhone, though the functionality of the device may differ significantly from the classic phone. At this stage, it is uncertain if any prototypes of the rumored designs are in existence. According to sources, OpenAI is contemplating both a full acquisition and possible partnership arrangements with the startup.
OpenAI Reportedly Considering Acquisition of Jony Ive’s AI Startup
The Information reports that OpenAI is evaluating the acquisition of the secretive AI venture led by Ive and Altman. Ive, formerly Apple’s Chief Design Officer, played a pivotal role in crafting the design language of the original iPhone, launched in 2007. It is noted that the design elements for the new AI devices are expected to be managed by Ive’s design firm, LoveFrom.
As reported by unnamed insiders, OpenAI executives estimate that fully acquiring the startup could cost upwards of $500 million (approximately Rs. 4,288 crore). Moreover, the organization is also looking into options beyond a full acquisition, including the establishment of a strategic partnership. Details regarding the motivation behind OpenAI’s interest in this startup remain unmentioned in the report.
The startup is said to be developing various product designs, including a phone-like device that lacks a screen. Previous discussions around the device suggest it may draw inspiration from the early iPhone; however, it is clarified that this product will not operate as a conventional phone. Additionally, the company is exploring designs for AI-powered home gadgets.
If the acquisition is finalized, it is expected that the startup’s product engineering team will be included in the agreement. Nevertheless, there are indications that former Apple designers Tang Tan and Evans Hankey might not be joining OpenAI as part of the deal.
Interestingly, a previous report indicated that Jony Ive was introduced to Sam Altman by Brian Chesky, the CEO of Airbnb and an early client of LoveFrom. While Altman is reportedly not a co-founder of the startup, he is believed to be involved in its endeavors, although the extent of his financial investment remains unclear.
