A Screenless Phone Featuring ChatGPT Might Be on the Way as OpenAI Allegedly Considers Jony Ive’s AI Startup.

ChatGPT maker OpenAI is reportedly looking into a potential acquisition of an artificial intelligence startup co-founded by former Apple design chief Jony Ive and OpenAI CEO Sam Altman. The deal could exceed $500 million, according to The Information.

The venture, called io Products, is developing a range of AI-powered technologies including a screenless phone concept and smart home devices, the publication said. io Products has denied that a phone is in development, however, and OpenAI didn’t respond to a request for comment.

The closely guarded AI hardware initiative was first reported by The New York Times in September. Ive — who is renowned for designing the iPhone, iPad and other iconic Apple products — said he was partnering with Altman to create a new AI-driven computing device aimed at being “less socially disruptive than the iPhone.”

Although few specifics have emerged about the device, Ive and Altman have reportedly secured early-stage backing from investors, including Laurene Powell Jobs, the widow of Apple co-founder Steve Jobs. Funding was expected to reach $1 billion by the end of last year, according to The New York Times.

In addition to acquisition talks, OpenAI is said to be exploring strategic partnerships with the venture. If a deal materializes, OpenAI would gain access to both the underlying technology and the core engineering team.

The report arrives as the AI voice assistant landscape grows, with OpenAI, Google, Meta and others racing to advance their AI chatbot offerings. A deal could also tighten OpenAI’s integration with a hardware player.

Ive’s design firm, LoveFrom — founded after his departure from Apple five years ago — is spearheading the device’s development. The company, co-founded by renowned luxury designer Marc Newson, a key contributor to the Apple Watch, includes former Apple executives such as Tang Tan, who led iPhone hardware design. LoveFrom’s client list includes brands like Airbnb and Ferrari.

OpenAI would ‘maintain its lead’ in AI

Jitesh Ubrani, a manager at market research firm IDC, told CNET a move into hardware would enable OpenAI to continue expanding across various platforms and make a stronger push into more environments.

“By partnering with a hardware startup, OpenAI can help maintain its lead across these other device types and usage scenarios,” Ubrani said. “Until the launch of AI, smart home hardware innovation [started]to plateau and by combining forces, the two companies could also benefit from growth in this space by injecting AI into the home.”