OpenAI CEO Sam Altman is collaborating with legendary Apple designer Jony Ive and philanthropist Laurene Powell Jobs on an ambitious new AI device startup that could reshape how we interact with artificial intelligence. The partnership, first reported by The Information in September 2023 and confirmed by Ive in a New York Times profile, brings together some of tech’s most influential figures.
The collaboration began when Airbnb CEO Brian Chesky introduced Altman and Ive after Airbnb had engaged Ive’s design firm, LoveFrom, for several projects. Ive, who spent nearly 30 years at Apple leading design for iconic products like the iMac, iPod, iPhone, iPad, and Apple Watch, founded LoveFrom in 2019. Over several dinner meetings, Altman and Ive discussed the potential for launching a new AI-centered computing device that would leverage advances in artificial intelligence.
The startup has been raising capital privately and is on track to secure up to $1 billion in funding by the end of 2024, according to The Times. Current investors include both Ive personally and Emerson Collective, the impact investing and philanthropy firm founded by Powell Jobs, widow of Apple founder Steve Jobs. Marc Newson, who cofounded LoveFrom with Ive, indicated that the team is still determining the product specifications and release timeline.
At The Wall Street Journal’s Tech Live event in October 2023, Altman expressed his vision for AI devices while emphasizing he has no intention of competing with smartphones. “Smartphones are great. I have no interest in trying to go compete with a smartphone,” Altman stated, but added that “every sufficiently big, new technology enables some new computing platform.”
The AI device market has proven challenging, as evidenced by Humane’s struggles with its Ai Pin product. Founded by former Apple employees Imran Chaudhri and Bethany Bongiorno in 2019, Humane launched the Ai Pin in November but received poor reviews. Bloomberg reported in May that Humane was seeking a buyer for $750 million to $1 billion, and The Verge reported that the company saw more returns than purchases between May and August, citing internal sales data. Despite being valued at $850 million, Humane’s difficulties highlight the risks in this emerging market.
The Altman-Ive partnership represents a significant bet on AI-native hardware that could define the next generation of personal computing devices.
Key Quotes
I’m interested in this topic, I think it is possible. I do think every sufficiently big, new technology enables some new computing platform. But lots of ideas, but all at the very nascent stage.
Sam Altman shared this perspective at The Wall Street Journal’s Tech Live event in October 2023, revealing his belief that AI represents a technology significant enough to warrant new hardware platforms, though acknowledging the concepts remain in early development stages.
Smartphones are great. I have no interest in trying to go compete with a smartphone. It’s a phenomenal thing at what it does.
Altman clarified to WSJ columnist Joanna Stern that his AI device venture isn’t intended to replace smartphones, but rather to create something new that leverages AI capabilities in ways that weren’t previously possible, positioning it as complementary rather than competitive.
But I think it’s well worth the effort of talking about or thinking about what we can make now that before we had computers that could think, or computers that could understand whatever you wanna call, was not possible. And if the answer is nothing, it would be a little bit disappointing.
This quote from Altman encapsulates the core motivation behind the project—exploring whether AI’s new capabilities enable entirely new categories of devices and experiences that weren’t feasible before the advent of advanced language models and AI systems.
Our Take
The Altman-Ive partnership is arguably the most credible attempt yet at creating AI-native hardware. While Humane’s Ai Pin demonstrated the market’s appetite for innovation, its execution failures showed that novel concepts require exceptional design and seamless functionality—precisely Ive’s strengths.
What’s particularly intriguing is the timing: as AI models become more capable and efficient, the case for dedicated AI hardware strengthens. The key question is whether they can identify a genuine use case that smartphones can’t adequately address. Voice-first interfaces, ambient computing, or entirely new interaction paradigms could differentiate this device.
The $1 billion funding target suggests a multi-year development timeline with substantial R&D investment, indicating they’re not rushing to market like Humane did. This patient, well-funded approach—combined with Ive’s perfectionism and Altman’s AI expertise—could finally deliver the breakthrough AI hardware product the industry has been anticipating. However, they must avoid the fate of previous “smartphone killers” that underestimated the versatility and ecosystem advantages of existing platforms.
Why This Matters
This collaboration represents a pivotal moment in AI hardware development, bringing together OpenAI’s leading AI technology with Apple’s legendary design philosophy. The partnership signals that major tech figures believe AI requires fundamentally new hardware interfaces beyond smartphones and computers.
The $1 billion funding target demonstrates serious investor confidence in AI-native devices, despite Humane’s recent struggles showing the market’s challenges. With Ive’s track record of creating category-defining products and Altman’s position at the forefront of AI development, this venture has the credibility and resources that previous attempts lacked.
The involvement of Laurene Powell Jobs through Emerson Collective adds both financial backing and strategic vision, suggesting this project aims for broader societal impact beyond commercial success. This could influence how AI technology becomes accessible and integrated into daily life.
For the AI industry, this represents a crucial test of whether generative AI and large language models can translate into compelling consumer hardware experiences. Success could open an entirely new market category, while failure might indicate that AI’s future remains primarily software-based, accessed through existing devices.
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Source: https://www.businessinsider.com/sam-altman-working-jony-ive-steve-jobs-widow-ai-device-2024-9