What you need to know
- Former Apple Chief Design Officer Jony Ive recently disclosed that he's working closely with OpenAI to develop a flagship device that could potentially take on Apple and Samsung in the mobile landscape.
- Rumors indicate the project is attracting investors, with one rumored to have already injected over $1 billion in funding.
- The new device will reportedly "use AI to create a computing experience that is less socially disruptive than the iPhone.”
OpenAI has been hitting the headlines for a wide array of things since launching ChatGPT in 2022, including the potential risk of AI taking over jobs from humans and inevitably ending humanity, burning through wads of cash to fund its advances, which has placed the AI firm on the brink of bankruptcy, and the OpenAI fiasco that led to the firing and rehiring of Sam Altman as CEO by the board of directors.
Admittedly, major tech corporations are hopping onto the AI bandwagon and using OpenAI's debatable success in the category as their premise. Microsoft, Apple, and NVIDIA have all had a crack at the coveted world's most valuable company with over $3 trillion in market capitalization. Market analysts and experts attribute the companies' success to their early investment and adoption of AI across their tech stack. This potentially explains their participation in OpenAI's latest round of funding to save it from the cusps of bankruptcy, pushing its market cap well beyond $150 billion.
As it now happens, OpenAI could potentially dabble its hand in the hardware landscape with the help of Apple's former Chief Design Officer, Jony Ive. Last year, rumors swirling around the windmill indicated that the Chief Designer deliberated with OpenAI to develop an "iPhone of artificial intelligence" featuring a “more natural and intuitive experience” when interacting with AI via the device.
In an interview with The New York Times, often tight-lipped about ongoing projects, Ive admitted that he's indeed working closely with OpenAI to develop a new device that could potentially give Apple and Samsung a run for their money in the mobile landscape (via Tom's Hardware).
While Jony Ive's comments on the ongoing project remained slim at best, we now know that it's something that we can all look forward to in the foreseeable future. We also know investors see the potential in OpenAI and are willing to make sizeable investments toward its advances, including Softbank's CEO, Masayoshi Son, who is rumored to have invested in funding to the tune of $1 billion.
Investors have raised concerns about Microsoft splurging money on its AI efforts, citing difficulty in identifying a clear path to profitability in the new category. Interestingly, investors are seemingly betting on OpenAI to become the world's dominant AI company worth trillions of dollars, touting its unique and dominant enterprise and consumer position.
OpenAI could be uniquely positioned to takeover the mobile landscape
Apple's iPhone sales have significantly dwindled, especially in the Chinese market. But this isn't written in stone and is on a touch-and-go basis, especially with the recent launch of the iPhone 16 series. As you may know, Apple recently discontinued the iPhone 15 Pro and iPhone 15 Pro Max, limiting Apple Intelligence to its iPhone 16 phones.
Over the past few months, major phone makers have been shipping their flagship phones with in-built AI capabilities and assistance as a blatant attempt to enhance their user experience and entice more people to buy their devices. Google has Gemini, Apple has Apple Intelligence, and Microsoft's Windows Phone would have featured Copilot if it hadn't pulled the plug on the device, sending it to the Microsoft Graveyard. Are we now looking at a potential iPhone of intelligence from OpenAI?
Only time will tell, but we know it'll be “a product that uses AI to create a computing experience that is less socially disruptive than the iPhone.” This is a developing story, and we'll keep tabs on the situation to keep you posted on any new information that surfaces.
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