OpenAI to Buy AI Device Startup From Apple Veteran Jony Ive in $6.5 Billion Deal

We all have witnessed the first glance of an Apple product with a video highlighting the physical design of product, narrated by Jony Ive in his British accent. Before Jony Ive left Apple in 2019, no Apple hardware was launched without his voice in the video. With his role in the creation of iPhone and Apple Watch, Jony Ive became the touchstone in Silicon Valley for his exponential hardware expertise. 

While Ive remained away from the limelight after leaving Apple, he has recently marked his return to the computer industry with a new video on this Wednesday. However, the video was not that of launching a new Apple product, it announced the $6.4 billion deal between his hardware firm, called io, and Open AI. According to the partnership, Ivy is now going to head up the design for a new AI hardware product series from Open AI. 

The new collaboration adds strengths to the existing sense of Silicon Valley that the new AI assistants and hardware might replace smartphones and laptops by bringing higher advancements and efficiencies. 

Apple analyst Gene Munster posted on X on Wednesday, “Tech shifts like the internet, the smartphone, and AI only happen once in a generation”. He further added, “OpenAI is catalyzing this shift into something tangible”. 

Even the current Chief of Service at Apple, Eddy Cue, stated in court that AI devices might replace iPhones within the coming 10 years. “AI is a new technology shift, and it’s creating new opportunities for new entrants,” Cue further added. 

Apple’s big step toward AI implementation in its built-in assistant Siri was already delayed earlier this year. However, Apple might unveil its innovation in the AI world at its annual WWDC conference on June 9 in Cupertino, California. This is the same event where Apple introduced Apple Intelligence last year and typically introduces its new software for iPad, Macs, and iPhones. 

What’s Coming Next?

Ivy partnership with OpenAI is undoubtedly an alarming call to Apple as their former product master will now be working with a competitor. It will not be surprising i the collaboration introduces innovative and AI products which might snatch Apple’s top position in the hardware industry in the coming years.  

Ive stated in the launch video, “I am absolutely certain that we are literally on the brink of a new generation of technology that can make us our better selves”. Sam Altman, OpenAI’s CEO, said. “We are excited to partner with Ive to try to create a new generation of AI-powered computers.”.

The collaboration is not going to impact Ive’s role in his existing firm, called LoveFrom. Along with Jony Ive, several other Apple design veterans and co-founders of io, including Scott Cannon, Evans Hankey, and Tang Tan, are joining OpenAI. 

Apple’s megacap competitors have also joined the race of AI race and are consistently introducing AI-powered assistants to gain a competitive edge in the market. For instance, Meta introduced its Ray-Ban smart glasses in the marketplace with more than 2 million pairs sold. Facebook has been running ads for the glasses, which show how the digital product answers the questions in a conversational manner using the Llama AI Model. The smart glasses are even capable of capturing video with built-in camera settings. 

Google, another big competitor of Apple, announced a sle of new AI features and models on Tuesday which included a full video generator, and a software named Android XR that will be manufactured by companies like Warby Parker. Similar to improvements in Siri, Google also announced the new Agent Mode of Gemini that will allow the assistant to perform several tasks