OpenAI is betting on a new era of computing that will validate its multibillion-dollar investments in custom hardware, according to Chief Financial Officer Sarah Friar. The artificial intelligence company, renowned for its ChatGPT chatbot, recently announced plans to acquire iPhone designer Jony Ive’s device startup, io, for approximately $6.4 billion. Founded about a year ago, io has yet to launch a product, making its valuation challenging. However, Friar expressed confidence that the investment will pay off over time.
Friar emphasized that the decision to invest in io was based on more than just the concept of a new platform. She noted the importance of having the right people who can not only envision future technology but also execute its development and manage complex supply chains. The vision is to bring OpenAI’s technology directly to users through innovative devices that could drive subscription growth and increase user engagement. ChatGPT already boasts around 500 million weekly active users, with even higher numbers on a monthly basis.
The potential of AI-enabled devices extends beyond traditional smartphones, igniting the imagination about future possibilities. Friar suggested that if OpenAI can engage users worldwide with AI-powered products, it could open doors to new business models, including ongoing and expanded subscription services for ChatGPT. This perspective reflects a broader industry belief that AI hardware could fundamentally reshape the computing landscape and even rival established devices like the iPhone. Earlier this month, Apple’s chief of services, Eddy Cue, predicted that AI devices could replace the iPhone within the next decade.
Despite collaborating with Apple on integrating OpenAI technology into iPhones and Siri, Friar explained that OpenAI sees value in developing its own proprietary hardware. The company aims to maintain partnerships with multiple device makers rather than relying on a single platform, which they believe fosters greater innovation across the ecosystem. OpenAI continues to work closely with Apple but also seeks to spark broader advancements in AI hardware.
Friar hinted that upcoming devices may break away from conventional touchscreen designs but refrained from providing specifics, citing the secretive culture of Jony Ive’s former Apple team and the mystique surrounding new product development. She described the emerging AI era as introducing new platforms and technological substrates that move beyond traditional touch interfaces. Humans primarily interact with the world through sight, sound, and speech—capabilities that OpenAI’s models are well equipped to enhance.
As OpenAI pushes forward with these ambitious plans, it is betting that this new generation of AI devices will redefine how people experience computing, bringing powerful AI tools closer to everyday life and sparking a transformation in both technology and business models.
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