OpenAI CEO Sam Altman and former Apple design chief Jony Ive are reportedly collaborating on a groundbreaking AI hardware project that could reshape the future of smartphones. Their venture, io Products, is focused on developing a new AI-powered device without a traditional screen—potentially positioning it as a revolutionary alternative to the iPhone. OpenAI is considering acquiring io Products in a deal estimated to be worth at least $500 million.

While the device is being referred to as an “AI phone,” the creators emphasize that it’s not a typical smartphone. Instead, it aims to introduce a new category of intelligent devices, integrating advanced AI features with sleek, user-centric design. Still in its conceptual stages, this futuristic product may rely more on voice, gesture, or other intuitive inputs instead of a visual interface.

The project is drawing attention not just for the potential of the product but also for the powerhouse team involved. Financial backing reportedly comes from Laurene Powell Jobs’ Emerson Collective, and several key former Apple designers like Tang Tan and Evans Hankey may also join the initiative.

Jony Ive’s design expertise will drive the device’s look and feel, while OpenAI will lead the AI integration and technological core. The team is currently expanding, bringing in engineers and experts to bring the product to life. If successful, this collaboration could mark a major shift in how we interact with technology—ushering in the post-smartphone era.