An AI device that changes the way users access and process data can eat into the market share of iPhones and other traditional devices.
Here’s what we know about OpenAI’s hardware efforts so far:
Multibillion deal to onboard Jony Ive, io
On May 21, OpenAI announced a $6.4 billion deal — its largest yet — to buy Jony Ive’s AI devices startup io Products in an all-equity deal. The merger was completed on July 9. Meanwhile, Ive and his art collective Lovefrom have assumed creative responsibilities across OpenAI.
Ive is known for designing iPhones, iPods, iPads and Macbooks for Apple. His startup, io, was created a year ago to develop, engineer and manufacture a new family of products for OpenAI.
Announcing the deal, Altman had said the prototype of the company’s first pocket-sized product was already complete, and he had even used it with satisfactory results. The OpenAI CEO did not divulge any further details about the device, though.
Poaching talent
OpenAI has tapped several Apple employees in the journey to its first device. At least 25 staff members from the Cupertino tech giant, including senior executives from design, manufacturing, and engineering teams, have moved to the AI major in 2025 so far, The Information reported.
Tang Tan — OpenAI’s chief hardware officer, io cofounder and an Apple veteran of 25 years — is helping bring Apple staff over, the report mentioned. Notable recruits include Cyrus Daniel Irani from Apple’s human interface design team and manufacturing design veteran Matt Theobald.
The Apple staff joining OpenAI have been promised “less bureaucracy and more collaboration”, The Information report said.
Engaging Apple’s assembler, supplier
OpenAI has secured a deal with Luxshare, a major iPhone and AirPods assembler, according to Reuters.
It has also approached China-based Goertek, a supplier that assembles AirPods, HomePods and Apple Watches, to provide components, including speaker modules, for its planned devices, the report added.
If they go through, these deals would bolster OpenAI’s manufacturing chops as it gets ready to roll out its device.