For over a decade, Apple and Samsung have set the standard in the smartphone industry, releasing cutting-edge devices year after year. But a revolutionary shift may be underway. In a bold move that could redefine how we interact with technology, OpenAI is reportedly planning a $500 million deal with former Apple design chief Jony Ive to develop a next-generation AI-powered device—one that may one day replace the iPhone.
The project, under the banner of a startup called iO Products, aims to break free from the traditional smartphone form factor by building a screenless AI device that reimagines what personal computing could look like. According to sources, this ambitious effort has the backing of both OpenAI CEO Sam Altman and Jony Ive, two powerful minds at the forefront of artificial intelligence and product design.
Jony Ive x OpenAI: "Her-device" in the making
— Chubby♨️ (@kimmonismus) April 7, 2025
In recent weeks, OpenAI has held talks about acquiring the hardware startup io Products, a joint project of Jony Ive and Sam Altman for the development of an AI-supported personal device.
A purchase price of over 500 million… pic.twitter.com/24odAYJbAe
The iPhone Alternative That’s “Not a Phone”
What’s most surprising about the device in development is that it may not have a traditional display at all. The founders of iO Products reportedly describe it as “not a phone” but rather a powerful AI assistant designed to operate in a more natural, voice-based, and ambient environment.
While still in its conceptual and early design phase, the device promises to shift the focus from screens and apps to intelligent interaction, using AI as its core engine. This could mark a radical departure from today’s smartphones, which rely heavily on touchscreens and visual interfaces.
Who’s Behind the Project?
This is not just another startup dream. The team assembling around iO Products reads like a who’s who of Silicon Valley’s finest minds. At the center are:
- Jony Ive, the legendary designer behind the iMac, iPod, iPhone, and Apple Watch.
- Sam Altman, CEO of OpenAI, the company responsible for ChatGPT, one of the most transformative AI technologies to date.
- Emerson Collective, the philanthropic and investment firm founded by Laurene Powell Jobs, is rumored to be providing early financial support.
- Former Apple veterans like Tang Tan and Evans Hankey, known for their work in hardware and product design, are also expected to contribute.
With design pedigree from Apple and technological muscle from OpenAI, this could be one of the most well-rounded tech collaborations in years.
Why This Matters: The Future Beyond Smartphones
At its core, the idea behind iO Products is to rethink how humans interact with machines in daily life. Instead of relying on visual input, the AI-powered device would use:
- Voice interactions
- Contextual awareness
- Environmental sensors
- Predictive computing
Think of it as a personal AI assistant that follows you, learns your habits, understands your preferences, and responds in real-time—without needing to be tapped, swiped, or stared at.
This could have sweeping implications for how we:
- Communicate
- Access information
- Navigate environments
- Manage tasks
- Use AI in our homes and on the go
Essentially, the team is imagining a future where the screen is no longer the center of our digital lives.
OpenAI’s Role: Powering the Brains
While Jony Ive’s team handles design, the technological backbone will be developed by OpenAI. This will likely include integration with ChatGPT and other generative AI models, allowing the device to:
- Understand complex natural language
- Provide context-based responses
- Automate everyday tasks
- Interface with smart home devices
- Learn and adapt continuously
Given OpenAI’s massive dataset and ongoing research into human-like intelligence, it’s safe to assume that the device will be more than just a voice assistant—it could be the most advanced consumer-facing AI hardware the world has seen.
Will Apple Feel the Heat?
Interestingly, OpenAI is currently collaborating with Apple to integrate AI into future Apple devices. This new project could potentially strain that relationship, especially if iO Products develops a direct competitor to the iPhone.
Apple is already under pressure for its slow AI rollout, with reports indicating delays in AI-based features. A disruptive product from iO Products could put even more scrutiny on Apple’s innovation pipeline and challenge its leadership in the consumer tech space.
However, it’s also worth noting that iO Products is years away from launching a mass-market product. Apple, with its resources and global reach, could use this time to reinforce its position by developing more robust AI-first features across its hardware ecosystem.
Challenges Ahead for iO Products
While the project sounds visionary, there are plenty of hurdles to clear before it becomes a reality:
- User Adoption: Will people embrace a screenless device in a world where visual content dominates?
- Hardware Limitations: Can the device be made compact, portable, and efficient enough for everyday use?
- Data Privacy: With AI integration, ensuring privacy and data security will be critical.
- Ecosystem Readiness: Building a standalone ecosystem is a daunting task—especially one that competes with iOS or Android.
- Cost & Accessibility: With cutting-edge design and technology, can it be priced affordably?
Still, with the credibility of Ive and Altman behind it, the project has already gained attention from tech insiders and investors alike.
The Bigger Picture: A Shift Toward Ambient Computing
This project is not just about creating a new gadget. It reflects a larger trend in tech: the move toward ambient and invisible computing. We’re heading toward a future where AI doesn’t live inside apps but blends into the environment, making technology feel less like a tool and more like an extension of ourselves.
Whether or not this new product becomes a true “iPhone killer,” it represents a paradigm shift in design and technology thinking. Just like the original iPhone changed the world in 2007, iO Products might set the stage for the next era of computing—one driven not by screens, but by intelligence and intuition.
Conclusion
The proposed $500 million collaboration between OpenAI and Jony Ive’s iO Products could signal the beginning of a new wave of AI-native devices. With the vision of eliminating screens and embracing intuitive, voice-first experiences, this venture aims to redefine personal computing as we know it.
It may take years to materialize, but if successful, this could be the boldest attempt yet to replace the iPhone—not with another phone, but with a smarter, seamless, AI-powered assistant for the 21st century.
