Sam Altman, head of OpenAI, maker of ChatGPT, which has made waves in artificial intelligence (AI) technology, has entered the hardware market. He has announced that he has bought the famous designer Jony Ive's design startup "IO" company for 6.5 billion US dollars.

Analysts believe that this agreement, which was announced only last week, signals new competition in consumer technology, AI and Silicon Valley.

This purchase brought Jony Ive and OpenAI into the limelight. According to Altman, Johnny will now lead the development of new types of devices with AI-based technology. Those devices are also expected to compete with smartphones in the future. "Johnny is the best designer in the world," says Altman, "now we will try to create a new generation of AI technology devices." 

Bloomberg writes that the deal isn't about a device's exterior design or how attractive a design looks, but instead begins a journey that will redefine collaboration between humans and AI. "Ive and Altman have been working quietly for a long time on building an AI device that will blend into everyday life," Bloomberg claims, "that will provide humans with an AI companion."

This deal is done entirely as equity. OpenAI has also incorporated iCo's 55-member team. Most of them are former Apple engineers and designers. However, Jony Ive's own design firm (Love Firm) will remain independent. Ive will now be responsible for the overall creative direction of OpenAI's hardware and software.

Altman's move is seen by technology analysts as the most concrete challenge yet to Apple's decades-long dominance. A senior analyst at the Wall Street Journal says, "This is the strongest move yet to attack Apple's hardware dominance." Apple's share price fell 2 percent after the news that OpenAI would make hardware devices. A software manufacturer like OpenAI, which has dominated the generative AI market with products like ChatGPT, now makes sense to move into hardware manufacturing. "It's like Tesla's model, trying to make everything from silicon to software and services themselves," Reuters' analysis says.

Altman has responded that it is time to create a new form and structure of AI, noting that further innovation is not possible by limiting AI to smartphones.

According to him, current AI models have achieved as much as can be done with a smartphone. The first device from the Altman-Ive partnership is expected to be released in 2026. However, no detailed information about the device has been given so far. However, experts have estimated that the device can be easily worn or carried, become a part of daily life like a smartphone, but different from a smartphone. 

The market value of OpenAI, which is dominating the AI ​​field, is now estimated at 300 billion dollars. After a historic $40 billion investment earlier this year, the company has positioned itself as one of the fastest growing technology companies in the world. The latest deal with Ive indicates that the company will now be aggressive not only in software but also in hardware. 

The generative AI sector was only worth 191 million US dollars in 2022, but it has become 26 billion US dollars in 2024. It is estimated to cross the $100 billion market by 2028. OpenAI currently holds about 17 percent of this market. Now the company is planning to increase this share by entering the field of hardware and design.