OpenAIs Ambitious Plan: 100 Million AI Companions on the Horizon

OpenAI has announced its acquisition of the startup founded by former Apple Chief Design Officer Jony Ive, which focuses on developing AI devices. The deal, valued at $6.5 billion, is reported by the WSJ.

Sam Altman’s company will purchase io in exchange for a stake worth $5 billion, as it already owns 23% of the shares. Ive’s startup employs approximately 55 engineers, scientists, researchers, physicists, and product development specialists, while his other venture, LoveFrom, will continue to operate independently.

Ive began collaborating with Altman two years ago, according to OpenAI’s blog. Following this merger, the former Apple executive and LoveFrom will tackle critical design and creative development tasks.

«I’m thrilled to partner with Jony, one of the greatest designers of our time. We eagerly anticipate creating a new generation of AI-powered computers,» stated Altman.

OpenAI will become a client of LoveFrom, which will also receive equity in the startup. The transaction is set to close in the summer, pending regulatory approval.

The WSJ highlighted that entrepreneurs have been secretly collaborating on a confidential project for two years — a new device that aims to help consumers move beyond screens.

Jonathan Ive will oversee the design of all OpenAI products, from future iterations of ChatGPT to audio features, mobile applications, and other company developments. He is famously known for designing iconic Apple products, including the iPod, iPhone, iPad, and MacBook Air. Ive also played a significant role in designing Apple’s new headquarters in Cupertino, Apple Park, which commenced in 2004 and officially opened in 2019.

According to media sources, Altman provided employees with a preliminary overview of devices he is developing in collaboration with Ive, revealing plans to launch 100 million «AI companions» intended to integrate into people’s daily lives.

Altman emphasized that OpenAI employees have «a chance to create the most significant work they have ever undertaken.» He believes acquiring io could raise the company’s valuation to $1 trillion.

The new product is expected to have a full understanding of the user’s environment and lifestyle. It will be unobtrusive, capable of resting in a pocket or on a desk, and could become a third essential device alongside the MacBook Pro and iPhone.

This will not be a phone, glasses, or any wearable technology — both Ive and Altman aim to wean people off screens, as noted by the WSJ. This signifies a «new design movement.»

The CEO of OpenAI highlighted plans for an entire «line of devices,» comparing the vision to Apple’s ecosystem. He stressed that privacy is crucial for the project’s success, as rival companies could replicate the product before its launch.

For several months, Ive’s team has been negotiating with suppliers to ensure large-scale production of the device.

«We’re not planning to release 100 million units on day one,» Altman stated.

He claimed that OpenAI will produce this number of gadgets «faster than any company that has ever shipped 100 million new devices.»

The release of the device is scheduled for late 2026.

Initially, Ive’s startup aimed to develop and sell its device using OpenAI technology. However, it later became clear that this model would not succeed. Altman acknowledged the need to merge the two companies, as the device is seen as a central component of user interaction with his startup, rather than merely an accessory.

The world of wearable AI devices is nascent but has garnered the attention of tech giants and entrepreneurs.

Altman has previously been one of the early investors in Humane — another company founded by former Apple employees. This firm created an AI device with a projector but ceased production after several setbacks and sold the company.

Other form factors for AI devices are proving to be more promising.

Meta’s smart glasses have gained popularity and received largely positive reviews. In September 2024, the company updated them to include real-time video processing, reminder features, translation capabilities, and integration with music applications.

«Technological shifts like the advent of the internet, smartphones, and AI happen once a generation. OpenAI is making this shift tangible. Before AI, there was no real threat to Apple’s or Google’s business models. The emergence of AI, led by OpenAI, represents the first serious challenge in the last 20 years,» highlighted Apple analyst Gene Munster noted.

In May 2025, Apple’s senior vice president of services, Eddy Cue, stated that technologies are changing too quickly, and in a few years, people may no longer use the devices they find familiar today.

«In ten years, it may sound crazy, but you might not need an iPhone. True competition is only possible when technological shifts occur. They create opportunities. AI is the new technological shift, creating new possibilities for new players,» he remarked.

Meanwhile, Apple is working on new chips for «smart» glasses that utilize cameras to scan the surrounding environment and rely on AI to assist the user.

In May, Google joined the race for smart glasses, announcing a partnership with Gentle Monster and Warby Parker to create a gadget based on Android XR. They revealed a concept device featuring the AI Gemini, equipped with a camera, microphone, speakers, and a display for notifications.

As a reminder, in September 2024, Ive confirmed his collaboration with OpenAI on a new AI device.