OpenAI mulling massive $500 million deal with former Apple design chief to bring iPhone replacement

Over the years, smartphone brands like Apple and Samsung have dominated the market by bringing innovative products every single year. But, what if I say that we may finally have an iPhone replacement? Well, in a new report, Apple's former design chief, Jony Ive and OpenAI CEO Sam Altman are in talks to build a phone without a traditional screen and other AI-powered smart devices for the home. OpenAI is currently planning to buy AI hardware startup “io Products,” which was founded by Jony Ive and Sam Altman. The information suggests that this deal could be worth at least $500 million. Know more about how io Products plans to replace the iPhone in the foreseeable future.

Also read: Trump tariffs could skyrocket iPhone prices by 40%: Here’s how much it may impact your pockets

This new product to replace iPhones

In a new citing, io Products has been working to bring an AI phone that does not have displays. This new device is expected to replace the iPhone, bringing advanced capabilities to users. However, the company suggests that it's “not a phone” but a powerful AI device. The product is currently in the early stages of product concept and design, which does not have a display. While the product itself sounds enticing and with two brilliant tech minds, the device could actually become revolutionary as the iPhones when it was first released.

Also read: How to turn your photos into Ghibli-style art with ChatGPT for free: Step-by-step guide

We already know about the involvement of both the company founders, but the project includes some of the famous minds, bringing their knowledge and skills to building a futuristic tech product. Reportedly, Laurene Powell Jobs’ Emerson Collective is providing the financial backing and former Apple designers, including Tang Tan and Evans Hankey, could also be part of the project.

As of now, the company is planning to bring more people who will bring the product to life. This will include engineers, backing from OpenAI for AI capabilities, and Ive's design team will work on the face of the product. However, the major technological aspect is expected to be looked after by OpenAI.

Also read: Air India introduces Apple AirTag support to let passengers track their baggage in real time

A threat to Apple?

Well, OpenAI is currently partnering with Apple in providing AI capabilities across products. Therefore, this new partnership with io Product could come as a roadblock for Apple and also raises questions over AI support for future devices. Currently, the company is already facing troubles in integrating AI and has delayed some major features, raising doubts in the minds of customers. However, the iO Product would take years to conceptualise and bring its products to the masses, and by that time, Apple may have grown in the AI sector as well.