OpenAI and former iPhone designer Jony Ive are developing a revolutionary AI device through a $6.4 billion partnership that will function as a third core device alongside smartphones and computers. Sam Altman describes the prototype as "the coolest piece of technology that the world will have ever seen," while the Wall Street Journal reports plans to build 100 million AI "companions." The device will feature full environmental awareness and contextual understanding of user life, but will be neither a phone nor smart glasses.
The device has been in secret development for two years, with Altman already personally testing Ive's prototype at home. According to The Guardian, the product will be "unobtrusive" and serve as a third essential device on desks after MacBook Pro and iPhone. Altman emphasized to employees this won't replace smartphones but represents an entirely new product category. Forrester Research analyst Martha Bennett warns it "really will have to be amazing to prise people away from today's screen-based devices," referencing previous AI hardware failures like Humane's defunct AI pin.
The io startup's 55-person team consists of Apple veterans including Evans Hankey and Tang Tan, who worked on iPhone and Apple Watch design until 2024. OpenAI acquired a 23% stake in io in late 2023, then announced full acquisition in May 2025. Ive remains independent with his LoveFrom design collective but takes creative leadership over OpenAI and io design, while Peter Welinder heads the new hardware division.
Sources:
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Dan Milmo
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Jony Ive, the designer behind Apple's most iconic products, is joining OpenAI to lead design efforts on a new AI hardware device aimed at redefining human-computer interaction.
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Jan Macarol
