Sam Altmann and Jony Ive are reportedly in talks to raise $1 billion in funding for secretive AI device startup

OpenAI CEO Sam Altman and former Apple designer Jony Ive are reportedly in funding talks with high-profile investors to raise $1 billion for their secretive AI-powered personal device company, according to a report from The Information.

Among the potential backers are Emerson Collective and Thrive Capital, which maintain strong ties to OpenAI, potentially signaling a strategic alignment with the startup’s ambitious goals.

Insiders familiar with the negotiations told The Information that the proposed device, although not resembling a traditional smartphone, is expected to leverage OpenAI’s advanced conversational AI technology to deliver an innovative user experience.

“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.