Sam Altman teams up with Jony Ive and Laurene Powell Jobs for a new startup to create a secret AI device

In April, we covered Sam Altman and former Apple designer Jony Ive after The Information reported their plans to raise $1 billion for a secretive AI device startup.

Fast forward five months, and Ive has officially confirmed over the weekend in a New York Times piece that he’s teaming up with OpenAI CEO Sam Altman to develop a new AI-powered hardware device. This marks Ive’s first significant tech project since departing from Apple.

Business Insider has also reported that Laurene Powell Jobs, widow of the late Steve Jobs, is joining the duo in this venture to create an AI-centric device. The aim is to design a product that offers a computing experience “less socially disruptive than the iPhone.”

“OpenAI CEO Sam Altman is working on a new AI device startup with former Apple design chief Jony Ive and Laurene Powell Jobs, the widow of the late Apple founder Steve Jobs.”

The Times notes that Ive’s design firm, LoveFrom, is leading the device’s design, supported by former Apple executives Tang Tan and Evans Hankey. While details remain under wraps, the device is intended to utilize generative AI to manage complex user requests beyond what traditional software can offer.

Why does this matter? As OpenAI and Apple deepen their collaboration with ChatGPT on the iPhone 16, Altman and Ive are forging their own partnership. By merging Ive’s renowned design skills with OpenAI’s innovative models, this collaboration could result in AI hardware that genuinely enhances our daily lives, unlike many existing options.

According to The Times, Airbnb CEO Brian Chesky facilitated the initial meeting between Altman and Ive last year, having engaged LoveFrom for several projects.

Ive launched LoveFrom in 2019 after nearly three decades at Apple, where he was instrumental in designing the iMac, iPod, iPhone, iPad, and Apple Watch.

Ive and Altman have dined together multiple times to discuss the potential of a new AI-focused computing device. Eventually, they decided to collaborate on this project.

Altman’s venture is currently raising funds privately, with investments from both Ive and Emerson Collective, the impact investing firm founded by Powell Jobs. The startup aims to raise up to $1 billion by the end of 2024.

Marc Newson, cofounder of LoveFrom, mentioned to The Times that they are still refining the product and determining its release timeline.

In October 2023, Altman expressed his enthusiasm for AI devices while speaking at The Wall Street Journal’s Tech Live event. “I’m interested in this topic; I think it is possible,” he stated, emphasizing the potential for new computing platforms arising from significant technological advancements. “There are lots of ideas, but all at the very nascent stage.”

Reports indicate that Altman and Ive are in talks with prominent investors to secure funding for their secretive AI-powered personal device company, including Emerson Collective and Thrive Capital, which have strong ties to OpenAI, potentially indicating a strategic alignment with the startup’s ambitious vision.

“The startup has discussed deals with Emerson Collective and Thrive Capital, a major investor in OpenAI, whose conversational AI could theoretically power some of the device features, according to a person involved in the process and another person with knowledge of the talks. Ive wants to raise up to $1 billion in funding, said a second person who has been involved in the process,” The Information reported.

Altman had previously explored funding options with SoftBank, a major Japanese investment firm, hinting at the ambitious nature of the project. In addition, Altman’s involvement with Humane AI, a company set to launch its ‘AI Pin’ devices, adds further intrigue to his ventures.

The collaboration between Altman and Ive represents a convergence of design expertise and AI innovation, potentially positioning the venture as a formidable challenger to established hardware giants in the burgeoning era of on-device AI. However, the venture also prompts scrutiny regarding the evolving relationship between OpenAI and Altman’s diverse array of ventures and interests.

The news of this funding comes two months after Altman sought to raise between $5 trillion to $7 trillion from UAE and others for AI chip fabrication. The primary goal of this investment initiative is to tackle the scarcity of Graphics Processing Units (GPUs), crucial components essential for training and operating large language models like those powering ChatGPT, Microsoft Copilot, and Google Gemini.

Altman co-founded OpenAI with Elon Musk in 2015 as a non-profit research institution for safe and beneficial artificial general intelligence (AGI). However, in 2020, it transitioned into a commercial entity, marking a significant shift in its trajectory. Despite internal disruptions in November, including Altman’s temporary departure and subsequent return, the company remains at the forefront of the burgeoning AI market, spurred by the successful launch of ChatGPT in 2022.