OpenAI has undoubtedly cemented its name as a force to reckon with in the AI landscape. This can be attributed to Microsoft CEO Satya Nadella's description of a two-year runway to build and develop ChatGPT uncontested. Interestingly, ChatGPT recently added one million new users after unveiling its new GPT-4o image generator.
And as it now seems, the ChatGPT maker may soon dabble in the mobile landscape, too. According to a report by The Information, the AI firm is in discussions to acquire io Products, co-founded by former Apple design chief Jony Ive and OpenAI CEO Sam Altman.
While io Products has blatantly dismissed claims of the development of an AI-powered phone, the outlet indicated that the company is working on a wide range of products, including a screenless phone concept and smart home devices.
Sam Altman and Jony Ive have reportedly secured investments from multiple investors, including Laurene Powell Jobs, the widow of the late Apple co-founder Steve Jobs. The funding is expected to hit $1 billion by the end of last year.
More interestingly, OpenAI is trying to forge a strategic partnership with io Products, allowing the ChatGPT maker to access its tech stack and engineering team behind the AI-powered devices.
This isn't the first time we've heard about OpenAI's plans to expand and diversify its portfolio by entering the mobile landscape.
Last year, OpenAI's CEO admitted that the company wants to dabble in the hardware space with an AI-specific device while expressing his keen interest in partnering with former Apple Chief Design Officer Jony Ive on the project. Altman indicated that the project could lead to the biggest tech disruption since the original iPhone launched in 2007.
Jony Ive confirmed that he's working closely with OpenAI to develop a flagship device that could take on Apple and Samsung in the mobile landscape. Reports suggest the device will "use AI to create a computing experience that is less socially disruptive than the iPhone.”
To that end, details about the device remain secret, with some speculating that it might be called the "iPhone of Intelligence," featuring a “more natural and intuitive experience.”
It'll be interesting to watch how things pan out, especially with President Trump's stringent tariffs saga, imposing hefty importation taxes on electronics, including gaming consoles, smartphones, TVs, and laptops.
Apple has recently found itself in a difficult situation. Between President Trump's tariffs, Apple Intelligence delays, and the exorbitant price tag on the rumored/leaked iPhone 17, things are likely to worsen.
