photo above: Sam Altman, CEO of OpenAI (right) and Jony Ive, founder of io Products
In May 2025, OpenAI announced the acquisition of io Products, a hardware startup co-founded by legendary Apple designer Jony Ive, for approximately $6.5 billion. Ive, who led Apple’s design team for nearly three decades and was often considered second only to Steve Jobs and Tim Cook, launched io Products in 2024 with a clear mission: to design a revolutionary AI-based hardware devices.
The company worked closely with LoveFrom, the design collective Ive founded after departing Apple in 2019. In a letter to employees two weeks ago, the CEO of OpenAI, Sam Altman, and Jony Ive, confirmed the deal had closed. “The io Products team has been integrated into OpenAI,” they wrote. “Jony and LoveFrom remain independent, but are now leading deep product design across OpenAI.”
AI for everyone, everywhere
The letter also revealed that discussions between Altman and Ive began nearly two years ago, as part of an effort to rethink the user experience – one that, despite rapid advances in computing power and connectivity, has remained largely unchanged over the past 15 years. They explored a variety of ideas for next-gen hardware, ultimately deciding that a dedicated company was needed in order to bring their concepts to life.
That’s how io Products was born. It quickly assembled a team of engineers, physicists, and researchers to begin prototyping radical new devices. Now, with io fully absorbed into OpenAI, the plan is to align the hardware roadmap closely with OpenAI’s software products – particularly ChatGPT. But what, exactly, is this new hardware?
While the company remains tight-lipped, several clues are beginning to emerge. The device is rumored to be a mass-market consumer product, potentially poised to become a “third essential device, alongside the desktop and mobile phone.” These hints came to light partially through court document filed after Google sued OpenAI, alleging trademark infringement over the name “io,” which Google claims conflicts with its subsidiary iyO.
Legal documents reveal some details
iyO is reportedly developing an AI-powered, screenless wearable: a small in-ear device designed to function as a “computer without a screen,” controlled by voice and audio-only feedback. OpenAI, in its court response, explained that its hardware initiative aims to “build a family of devices that redefine how humans interact with AI,” and that it had explored various form factors, including desktop, mobile, wired, wireless, and even wearables.
Former senior Apple’s engineer and io Products co-founder, Tang Tan, is cited on this documenty, saying that OpenAI’s device is “very different” from Google’s iyO wearable. This led analysts to suspect that it may not be a wearable at all. In a promotional video released by OpenAI in May (later removed), Ive and Altman commented on how outdated our current interfaces are, relying on technology “developed more than a decade ago.”
They noted that interacting with ChatGPT today involves using a PC or opening a Cloud-based App – neither of which is ideal. Altman described the goal as delivering a device “everyone will use”, much like the smartphone. He was even quoted by news outlets expressing an ambition to make a big launch in 2026, with the intention of selling 100 million units during the initial rollout.
Will ChatGPT kill the Smartphone?
So what is it? Mystery still surrounds the device. In a podcast interview with his brother, Jack Altman, Sam hinted that the new device would surpass smartphones and computers in capability. He emphasized that it won’t be a smartphone or smart glasses, but rather a new category altogether: a personal AI assistant or companion. “I don’t have a good name for it yet,” he admitted, “but the best I can do is: My AI Companion.”
In a February 2025 interview with Nikkei Asia, Altman elaborated further, expressing hope that the new device could eliminate the need for smartphones altogether, by deeply embedding AI into the user’s day-to-day interaction with AI technology. The vision, developed in collaboration with Jony Ive, is to move beyond the screen-and-app paradigm that has dominated mobile for years. Instead, the new device will rely on seamless integration with ChatGPT to assist with communication, task automation, and a wide range of everyday needs.


