OpenAI Swoons iPhone Creator in $500 Million Hardware Takeover—Apple Sheds Tears…

Well, it appears Sam Weird Al-tman doesn’t just want to run the future of AI, he wants to design the hardware it lives in, too. And apparently, he’s ready to drop half a billy to do it. In short, according to the The Information, OpenAI is mulling a full-on acquisition of io Products—the ultra-stealth startup run by none other than Jony Ive, the guy who literally helped Steve Jobs design the iPhone, the iMac, and basically every Apple product that made you feel something. Yeah, that dude.

The price tag is reportedly to be at least $500 million. Which doesn't phase Altman at all because as we all know from the great Pied Piper, the companies who spend and lose the most money are worth the most. For more context, Sam’s crew is sitting on $40B in fresh capital and clocking a $300B valuation. So buying Jony's AI hardware brainchild, is legit no-brainer here. 

But, but, but… what the hell is io Products building? Short answer: no one really knows. Long answer: it’s a “personal device” that’s either a screenless AI-powered smartphone or something that’s “not a phone,” depending on who you ask. Which is exactly the kind of cryptic bait you’d expect from a team stacked with ex-Apple royalty. We’re talking Tang Tan (former iPhone and Apple Watch design boss), Evans Hankey (Ive’s successor at Apple), and a roster of Cupertino defectors who’d rather build real AI-Skynet’s assistant than debug Siri for the billionth time. 

(Source: New York Post) 

In other words, what we’re smelling here isn’t another gimmick with AI slapped on it. This is a legit attempt to redefine how hardware and AI work together — and it’s being built by the same people who defined the last era of consumer tech. Meanwhile over at Apple, executives are punching air. Or said another way, the iPhone maker is fumbling the AI bag so hard it’s almost impressive. They’ve delayed their Siri overhaul, insiders are calling the whole thing “ugly,” and we’re hearing reports that staff are “embarrassed” by the lack of progress. It’s a mess. And OpenAI knows it.

Meaning, if this deal goes through it’s a shot across the bow. Hell, it’s a cannonball through Tim Cook’s yacht. OpenAI would instantly go from “the software guys” to a serious threat in the consumer hardware game. Not just because they have the tech — but because they’d have the design muscle to make it beautiful, frictionless, and addictive.

(Source: Giphy) 

Plus, just look at the branding optics of this whole shindig. Altman + Ive is the closest thing we’ve seen to Jobs + Ive since... well, Jobs + Ive. And in all honesty, it’s the kind of marriage that could sell a glorified paperweight and still make it feel like the second coming of sliced bread. Now imagine that chemistry applied to a device that knows what you want before you do, books your travel, ID’s your plants, and maybe even reads your emails in a British accent. 

In the end, if OpenAI controls the device, the UI, the assistant, and the back-end models powering it all, it’s game-over when it comes to the Iron Throne of all things AI. This is a smart move, all while Apple is still chasing Siri and Vision Pro dreams. Which means, I highly suggest keeping your eyes on this story, and place your bets accordingly. Sam Altman just made things way more interesting, and it could have big impacts in the near future. Until next time, friends… 

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Stocks.News holds positions in Apple as mentioned in the article.