Former Apple Design Chief Jony Ive reportedly developing AI phone without a screen

OpenAI is reportedly exploring a significant move into consumer hardware by potentially acquiring io Products, the secretive AI-focused venture co-founded by its CEO Sam Altman and renowned designer Jony Ive. According to a report from The Information, the discussions are still in progress and could result in a deal valued at over $500 million.

The startup, which has largely operated under the radar, brings together talent from Apple’s former industrial design team, including Tang Tan and Evans Hankey, longtime collaborators of Ive. Though still early in development, the project aims to rethink how users interact with AI, shifting away from screens and traditional interfaces entirely. People familiar with the matter say the hardware may take the form of a voice-first assistant, though the team has pushed back on the idea that it’s building a phone.

If the deal moves forward, it would mark a pivotal expansion for OpenAI beyond software and APIs. The company has made strides with conversational AI, including a voice interaction mode for ChatGPT, but has yet to translate that success into physical devices. A collaboration with Ive, who shaped Apple’s most iconic products, would give OpenAI a credible path into hardware innovation.

The model under discussion wouldn’t necessarily require a full acquisition. An alternative being considered is a strategic partnership, where OpenAI supplies the intelligence layer, Ive’s design firm LoveFrom leads industrial design, and io Products handles hardware development directly.

While OpenAI and Apple currently collaborate, ChatGPT now powers some of Siri’s advanced responses on iPhones, this move could put the companies on a more competitive path in the future, particularly as the AI assistant market heats up. Rivals including Meta, Google, and Elon Musk’s xAI are all working to bring AI assistants beyond screens and deeper into users’ daily environments.

The effort reflects a growing belief among tech leaders that AI hardware may define the next era of consumer electronics. For OpenAI, this potential deal isn’t just about devices, it’s about redefining how people experience artificial intelligence in the real world.