OpenAI is making a significant move in the tech industry by acquiring io, the AI device startup founded by Jony Ive, for nearly $6. 5 billion. This collaboration between Sam Altman, OpenAI’s CEO, and Ive, the designer behind iconic Apple products like the iPhone and Apple Watch, aims to create a new generation of AI-powered devices that could transform how we interact with technology. Why this deal matters: Jony Ive is taking on a major creative and design leadership role at OpenAI, bringing his team of engineers and designers, many with Apple backgrounds. Their goal is to develop innovative hardware that surpasses traditional smartphones and laptops. The first product, expected in 2026, is rumored to be a “screenless” AI companion device that understands its environment and assists users in ways current devices cannot. Apple faces fresh competition as OpenAI ventures into hardware innovation. Already seen as a leader in design, Apple has struggled with rapid AI advancements. Investors reacted with concern, as Apple’s stock dropped following the news. Unlike Google, which tried to compete with Apple on familiar ground, OpenAI and Ive plan to focus on AI-first experiences and move beyond traditional screens, potentially making the iPhone feel outdated. Regarding the new device, details remain scarce, but Altman and Ive have hinted it will be part of a family of AI devices emphasizing seamless, intuitive interactions without relying on screens. It will not be a phone or smart glasses but something entirely new that integrates naturally into daily life, akin to how MacBooks and iPhones once did.

OpenAI’s ambition is enormous—they aim to ship 100 million units faster than any prior launch of a new product. This acquisition marks OpenAI’s largest to date and signals a significant push into consumer hardware led by Ive’s design expertise. For Apple, pressure mounts to accelerate its AI initiatives and innovate beyond incremental improvements. The competition now centers on redefining human-technology relationships in the AI era, not just on who makes the best phone. Kurt’s takeaway: The partnership between Altman and Ive represents a bold vision for personal technology’s future. If successful, their AI devices could spark a major shift in how technology is used and perceived. Apple faces a real challenger, setting the stage for an exciting period in tech innovation. Readers are encouraged to share their thoughts on whether Apple can regain its innovation edge or if new players like OpenAI now lead the future of personal technology. For more tech tips, security alerts, and exclusive content, sign up for the free CyberGuy Report newsletter at Cyberguy. com/Newsletter. Stay connected with Kurt on Facebook, YouTube, and Instagram, and explore answers to popular questions on device security, privacy, robocall prevention, and data removal. Also available are CyberGuy’s new games and exclusive coupons.