Earlier this year, OpenAI made headlines by acquiring io, the AI hardware startup co-founded by legendary Apple designer Jony Ive, in a $6.5 billion all-stock deal.
The acquisition, OpenAI’s largest to date, aims to create a groundbreaking AI-first product that could redefine how we interact with artificial intelligence. With Jony Ive and his design firm LoveFrom now leading creative efforts at OpenAI, the company is moving swiftly to blend cutting-edge AI with innovative hardware. But what’s happening behind the scenes as OpenAI works to bring this vision to life? From poaching Apple talent to tapping into its supply chain and grappling with computational challenges, here’s a look at the latest developments.
Building a Dream Team: Poaching Apple Veterans
OpenAI has been aggressively recruiting talent from Apple, luring over 20 seasoned designers, engineers, and product specialists - many of whom worked under Steve Jobs during Apple’s iconic product launches. While this number may seem small in the context of Apple’s vast workforce, these are not entry-level employees but veterans with deep expertise in crafting game-changing consumer hardware.
OpenAI is offering substantial financial incentives, but money isn’t the only draw. The opportunity to reunite with other top-tier Apple alumni and work on a revolutionary AI-driven product is proving to be a powerful motivator. The io team, now integrated into OpenAI, includes former Apple design leaders like Tang Tan, Scott Cannon, and Evans Hankey, alongside Ive’s longtime collaborator Mark Newson. This powerhouse group is tasked with creating devices that could rival the iPhone in impact.
Tapping into Apple’s Supply Chain
To bring its AI-first devices to market, OpenAI is leveraging Apple’s decades-long expertise in supply chain management. The company has begun collaborating with key Apple suppliers in China, including Luxshare, a major assembler of iPhones and AirPods, which has already signed a contract to manufacture at least one of OpenAI’s devices. O
penAI is also in talks with Goertek, another Apple supplier known for producing components for AirPods, HomePods, and Apple Watches. These partnerships signal OpenAI’s ambition to produce high-quality, mass-market hardware by tapping into the same infrastructure that powers Apple’s global success. This move not only accelerates OpenAI’s production timeline but also underscores its intent to compete directly with tech giants like Apple in the consumer hardware space.
The Vision: A New Kind of AI Device
While details about OpenAI’s upcoming products remain closely guarded, sources indicate the company is exploring a range of innovative devices. One product under discussion resembles a screenless smart speaker, designed to deliver AI-driven interactions through voice and generative AI capabilities.
OpenAI is also considering other form factors, including glasses, a digital voice recorder, and a wearable pin, all aimed at moving consumers “beyond screens” and redefining human-AI interaction. These devices, expected to launch in late 2026 or early 2027, will integrate OpenAI’s industry-leading AI models with Jony Ive’s minimalist design philosophy, promising a user experience that feels both intuitive and revolutionary.
Computational Challenges: Scaling for a Viral Future
OpenAI’s ambitions come with significant challenges, particularly in computational capacity. The company is racing to scale its infrastructure to support a rapidly growing user base, which has surged from 400 million weekly active users in February to a projected 1 billion by year’s end.
The success of its image generation model, which attracted over 100 million users, highlighted the strain on OpenAI’s resources. A future viral product could push its systems to the breaking point, forcing the company to throttle generation or limit access.
To address this, OpenAI’s leadership recently informed shareholders of plans to spend a staggering $100 billion over the next five years on renting reserve servers from cloud providers. This is in addition to the $350 billion previously forecasted for server rentals through 2030, bringing the total to $450 billion. These investments are critical to ensuring OpenAI can handle the computational demands of its AI models and support its goal of becoming the backbone of consumer AI experiences.
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A New Era of Computing
OpenAI’s acquisition of Jony Ive’s io and its push into hardware mark a pivotal moment in the AI industry. By combining Ive’s design expertise with its own AI capabilities, OpenAI is positioning itself to challenge Apple and other tech giants in the race for the next transformative consumer device.
The collaboration, which began quietly two years ago, has evolved into a bold mission to “reimagine what it means to use a computer,” as CEO Sam Altman put it.
With a prototype already tested and a talented team in place, OpenAI is betting that its AI-first devices will capture the imagination of consumers worldwide.
However, the road ahead is fraught with challenges. Scaling production, managing computational demands, and delivering on the promise of a revolutionary product will test OpenAI’s resources and resolve. The company’s massive server rental plans signal its commitment to staying ahead, but the $450 billion price tag underscores the high stakes of its ambitions. As OpenAI aims for 1 billion weekly users and a 2026-2027 launch, the tech world is watching closely to see if this partnership can deliver a product as iconic as the iPhone - or something even more transformative.
