From: allin
OpenAI, the creator of ChatGPT, acquired the startup IO, founded by Johnny Ive, for $6.5 billion in an all-stock deal [00:46:49]. This acquisition is intended to facilitate the creation of a new “gadget” or “next-gen device” [00:00:30][00:46:05].
Key Figures and Background
Johnny Ive, a co-founder of IO, is widely recognized as a key collaborator and designer alongside Steve Jobs, responsible for iconic Apple products like the iPhone, iPod, and iPad [00:47:00]. OpenAI had reportedly been pursuing this acquisition for a couple of years [00:46:00]. Sam Altman, CEO of OpenAI, referred to Ive as “the deepest thinker of anyone I’ve ever met” [00:49:54].
The Device and its Implications
While the specific nature of the device remains under wraps, speculation points towards smart glasses or a pendant-like wearable, similar to products from companies like Humane [00:54:01][00:56:20]. The core concept is an AI-first device that tracks ambient information and feeds it to AI for context [00:53:54]. This marks OpenAI’s foray into hardware [00:53:50].
However, concerns have been raised regarding privacy, as such devices are inherently surveillance tools that listen and see everything around the user, requiring complete trust in the company [01:14:46][01:15:00]. There is a suggestion for legislation requiring a red flashing light on these devices when they are recording [01:15:15].
The acquisition’s valuation of 300 billion SoftBank round, were reportedly “much cleaner” compared to previous rounds, which had hard rates of return or stock put-back options [00:54:42]. This suggests either strong negotiating prowess by OpenAI or a different risk management philosophy by SoftBank [00:55:22].
Critiques of Johnny Ive’s Design Influence
Some observers expressed skepticism about Johnny Ive’s “design god” reputation, suggesting that much of Apple’s design was inspired by German industrial designer Dieter Rams [00:51:31][00:52:01]. Despite this, it is acknowledged that Ive’s design contributions could significantly enhance the new product [00:55:36].
Overall, the acquisition signals OpenAI’s strategic push into hardware, aiming to integrate AI directly into consumer devices.