OpenAI Eyes $500 Million Deal To Acquire Jony Ive And Sam Altman's AI Hardware Startup: Report

OpenAI is reportedly in discussions to acquire the AI hardware startup co-founded by Jony Ive and Sam Altman in a deal worth approximately $500 million.

What Happened: OpenAI is considering purchasing io Products, a company that focuses on creating AI-enabled devices, reported TechCrunch (via The Information).

The startup was co-founded by former Apple design lead Ive, who left the tech giant in 2019 to start his own design firm, LoveFrom, and OpenAI CEO Altman.

io Products, which has received funding from Laurene Powell Jobs' Emerson Collective and others, has been developing a range of products, including smart home gadgets.

The report indicates that OpenAI may choose to partner with io Products instead of acquiring it outright. The small team at io Products includes former Apple designers Tang Tan and Evans Hankey.

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Why It Matters: Earlier this year, OpenAI closed a historic $40 billion funding round, pushing its valuation to $300 billion, with major backing from SoftBank Group SFTBF SFTBY, Microsoft Corp. MSFT, and other prominent investors.

According to research firm PitchBook, this marks the largest funding round ever recorded and nearly doubles OpenAI's previous valuation of $157 billion.

OpenAI is reportedly projecting its revenue to reach $12.7 billion this year. The company also announced that its enterprise versions of ChatGPT now have 1 million paying users, alongside the introduction of a new $200-per-month “Pro” plan offering access to its most advanced AI models.

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