AI company OpenAI gearing up for release of a phone without screen, aiming to challenge Apple's market dominance with their innovative product.
In the ever-evolving landscape of mobile technology, a potential game-changer is on the horizon. OpenAI, the trailblazing AI company behind ChatGPT, is rumored to be venturing into the smartphone market, much like Apple did with the iPhone in 2007.
However, while Apple is currently grappling with challenges such as delays in its Apple Intelligence rollout, rising tariffs, and concerns about the pricing of the iPhone 17, OpenAI's entrance into the market may present an opportunity for disruption.
Reports suggest that OpenAI has acquired Jony Ive's AI hardware startup, io Products, for $6.5 billion in July 2025. This strategic partnership is expected to result in the development of AI-powered hardware devices, with the first device being a pocket-sized, context-aware gadget designed for screen-free interaction.
While some have referred to this potential device as the "iPhone of Intelligence," it is not confirmed to be a conventional AI-powered smartphone. Instead, it is rumored to be a new type of AI hardware device, focusing on innovative interaction models without a traditional screen.
OpenAI's CEO, Sam Altman, has previously expressed interest in building a device that reimagines human-computer interaction. The goal of this potential device is to be more intuitive, ambient, and less socially disruptive than the iPhone.
Meanwhile, io Products has denied claims that it's developing an AI-powered smartphone. However, it is said to be working on a screenless phone concept and other AI-driven devices. The details of io Products' work beyond the screenless phone concept are not yet fully disclosed.
As for the mobile tech world, this potential collaboration between OpenAI and io Products could mark a new chapter. With OpenAI's recent success with GPT-4o, including a million new users, it seems that the company sees hardware as its next big leap.
Mustafa Khan, a tech journalist known for his straightforward smartphone reviews, is keeping a close eye on these developments. For those interested in learning more about Mustafa and his work, his full profile is available for viewing.
[1] TechCrunch. (2025). OpenAI Acquires Jony Ive's AI Hardware Startup io Products for $6.5 Billion. [online] Available at: https://techcrunch.com/2025/07/01/openai-acquires-jony-ive-ai-hardware-startup-io-products-for-6-5-billion/
[2] The Verge. (2025). OpenAI is rumored to be developing a screenless smartphone. [online] Available at: https://www.theverge.com/2025/08/01/openai-screenless-smartphone
[3] CNET. (2025). OpenAI's potential screenless smartphone could redefine human-AI interaction. [online] Available at: https://www.cnet.com/news/openais-potential-screenless-smartphone-could-redefine-human-ai-interaction/
OpenAI's acquisition of Jony Ive's AI hardware startup, io Products, is expected to lead to the development of a novel AI-powered gadget, possibly a context-aware, screen-free device. This potential device, designed for more intuitive and ambient human-computer interaction, may not be a traditional AI-powered smartphone, but a new type of AI hardware device focusing on innovative interaction models.
The latest development in mobile technology could be the collaboration between OpenAI and io Products, potentially marking a turning point, especially considering OpenAI's recent success with GPT-4o and interest in hardware advancements.
