OpenAI is making its boldest move into the consumer hardware world yet—partnering with legendary designer Jony Ive to create a revolutionary AI-powered device. This collaboration merges OpenAI’s cutting-edge language models with Ive’s world-famous design sensibility, cultivated during his years at Apple. The goal? To reimagine how we interact with AI—beyond screens, keyboards, and touch interfaces.
The project gained major traction in May 2025, when OpenAI reportedly acquired Ive’s hardware startup, io, for $6.5 billion. That deal not only brought Ive and his team at LoveFrom into the fold, but also accelerated the timeline for bringing this mystery device to market.
“AI is an incredible technology, but great tools require work at the intersection of technology, design, and understanding people and the world. No one can do this like Jony and his team; the amount of care they put into every aspect of the process is extraordinary.”
-Sam Altman
A Third Core Device: Not a Phone, Not a Laptop
The device is not being designed as a replacement for smartphones or computers. Instead, it’s being positioned as a new “third core device”—something ambient, always available, and AI-first. According to early reports, it’s compact, potentially worn around the neck like a pendant, and entirely screenless. Some leaks compare it to the iPod Shuffle in size and form.
With built-in microphones and cameras, the device will be contextually aware, using its environment to understand what the user is doing, saying, or needing in real time. The interface will be primarily voice- and gesture-based, and it will leverage OpenAI’s latest models—such as GPT-5—to act as a personalized assistant with deep memory and adaptive learning capabilities.
Designed to Break Our Addiction to Screens
Both Sam Altman and Jony Ive have spoken about the downsides of current screen-centric tech. Ive, in particular, has publicly criticized how modern devices command constant attention and promote digital dependency. This device is intended to flip that model—creating a more natural, human-first interface that helps users engage with technology without being trapped by it.
Laurene Powell Jobs, via her Emerson Collective, is also involved in the effort. She has long advocated for tech products that prioritize ethical design and emotional intelligence. Her involvement adds weight to the project’s goal of making AI humane, not just powerful.
Target: 100 Million Units
OpenAI has ambitious plans for this device—aiming to ship 100 million units, a figure that would rival some of the fastest-selling tech products in history. Internal estimates suggest this could add over $1 trillion in market value to OpenAI if successful. This isn’t just a moonshot project; it’s central to OpenAI’s next phase of growth.
Ive’s team at LoveFrom is reportedly exploring multiple form factors, materials, and sensory inputs. There’s also a strong focus on making the device energy-efficient and privacy-conscious—two crucial factors for always-on hardware.
Built Around ChatGPT as a Super-Assistant
Altman has long teased the idea of a “super-assistant”—an evolution of ChatGPT that knows you deeply, understands your preferences, and proactively helps manage your day. This device is designed to embody that vision. Whether it’s summarizing emails, helping with travel, offering life advice, or interpreting the world around you, it will work in the background to assist without being obtrusive.
Critically, it will integrate tightly with OpenAI’s ecosystem, including ChatGPT, Whisper (for voice), and potentially DALL·E (for image understanding). While it’s still unclear how much processing will be done on-device vs. in the cloud, privacy and latency are reportedly top priorities in development.
The Risks: Learning From Humane and Rabbit
This isn’t the first time someone has tried to build a screenless AI companion. Startups like Humane and Rabbit have launched similar wearable AI devices—and faced significant criticism. Poor usability, limited functionality, and battery issues plagued their releases.
OpenAI is aware of these pitfalls and is reportedly working closely with Apple alumni and hardware veterans to ensure the device delivers genuine utility—not just hype. The challenge lies in designing intuitive interactions and achieving a balance between utility, privacy, and ease of use.
Timeline and Release Expectations
The first version of the device is expected to be unveiled in late 2026, with a broader rollout planned for 2027. OpenAI is said to be recruiting hardware engineers, audio specialists, and UX designers aggressively as the project scales up.
If successful, this device could mark the beginning of a new category—ambient AI hardware that’s always with you, always listening (with consent), and designed to empower, not distract.
Why This Matters
With companies like Apple and Google baking AI deeply into their ecosystems, OpenAI’s move into hardware is both offensive and defensive. It allows the company to set its own rules for how AI should live in the real world—without relying on smartphones as a delivery mechanism.
This project could redefine not just how we use AI, but how we experience everyday technology. And with names like Altman, Ive, and Powell Jobs behind it, the tech industry is watching closely.
Stay tuned. The AI future may be hanging from your neck sooner than you think.
Who Owns OpenAI
OpenAI stands out in the tech world with its unique ownership structure. The company operates under a hybrid model where a nonprofit organization called the OpenAI Nonprofit governs a for-profit entity. While Microsoft has invested roughly $13 billion and owns about 49% of OpenAI’s equity, OpenAI remains an independent company controlled by its nonprofit board.
This unusual arrangement was designed to ensure that artificial general intelligence (AGI) would benefit humanity broadly rather than serve the interests of a single corporate entity. Originally co-founded by Sam Altman and Elon Musk among others, the leadership structure faced drama in late 2023 when Altman was briefly fired before returning as CEO. More recently, Altman rejected a $97.4 billion takeover bid from a group led by former co-founder Elon Musk.
OpenAI’s structure represents a deliberate attempt to balance commercial interests with its stated mission of developing safe AI that benefits humanity. While Microsoft provides significant financial backing and computing resources through its cloud platform, the nonprofit board maintains ultimate control over the organization’s direction and decisions regarding its groundbreaking AI technologies like ChatGPT.
OpenAI has a rather unique and complex ownership structure, designed to balance its mission of developing beneficial AI for humanity with the need to raise significant capital for research and development.
Here’s a breakdown:
- The Non-profit Parent: At its core, OpenAI is overseen and controlled by OpenAI, Inc., a non-profit organization. This non-profit’s mission is to ensure that Artificial General Intelligence (AGI) benefits all of humanity. Its board of directors is primarily independent and does not hold equity in the for-profit subsidiary.
- The For-Profit Subsidiary (OpenAI Global LLC, transitioning to a Public Benefit Corporation): To attract substantial investment, OpenAI established a “capped-profit” for-profit subsidiary, OpenAI Global LLC. This entity is currently transitioning to a Public Benefit Corporation (PBC).
- The PBC structure allows OpenAI to raise capital with conventional terms, meaning investors can own equity.
- Crucially, the non-profit parent retains control over this for-profit entity, and will become a significant shareholder in the PBC.
- While the for-profit subsidiary can make and distribute profit, it is subject to the non-profit’s mission of safe and broadly beneficial AGI. Any residual value created above and beyond the capped profits for investors is intended to be returned to the non-profit for the benefit of humanity.
- Key Investors and Stakeholders:
- Microsoft: Microsoft is a major investor, having committed billions of dollars (reportedly over $13 billion). They are entitled to a significant share of the for-profit’s profits, capped at an estimated 10 times their investment. However, OpenAI emphasizes that it remains an entirely independent company governed by the non-profit, and AGI technology is explicitly carved out of commercial and IP licensing agreements with Microsoft.
- Other Investors: Various venture capital firms and individuals have also invested in OpenAI, including Sequoia Capital, Andreessen Horowitz, Tiger Global Management, Founders Fund, and others.
- Employees: Employees also hold equity in the for-profit entity.
- Sam Altman (CEO): While CEO, Sam Altman does not hold direct equity in OpenAI. His interest is indirect through a Y Combinator investment fund that made a small investment before he was full-time.
In essence, OpenAI’s structure aims to provide the financial resources needed to pursue ambitious AI development while ensuring that the core mission of benefiting humanity remains paramount and under the guidance of the non-profit.
Key Takeaways
- OpenAI operates under a hybrid model with a nonprofit organization governing a for-profit entity, keeping Microsoft’s 49% equity stake from controlling the company.
- Sam Altman leads the company as CEO after weathering leadership challenges, recently rejecting a nearly $100 billion takeover attempt by Elon Musk.
- The unique ownership structure aims to ensure advanced AI development remains safety-focused and benefits humanity broadly rather than serving single corporate interests.
Ownership and Financial Backing
OpenAI has a complex ownership structure that combines nonprofit governance with for-profit investment. This unique arrangement helps the organization pursue its AI research mission while securing the significant funding needed for advanced technology development.
From Nonprofit to For-Profit: OpenAI’s Transition
OpenAI began as a nonprofit organization in 2015, founded by figures including Sam Altman and Elon Musk. Their goal was to develop artificial intelligence that benefits humanity without being constrained by financial interests.
In 2019, OpenAI created a for-profit entity called OpenAI LP. This restructuring allowed the company to attract larger investments while maintaining its mission. The nonprofit OpenAI foundation still governs the company as the controlling entity.
This hybrid structure was designed so OpenAI could compete with well-funded tech giants while keeping its commitment to developing beneficial AI. The nonprofit board maintains oversight of the for-profit subsidiary, making major decisions about the company’s direction and ensuring alignment with the original mission.
Key Investors and Partners
Microsoft stands as OpenAI’s largest investor, having contributed approximately $13 billion and owning roughly 49% of the company’s equity. This partnership also provides OpenAI with crucial computing resources through Microsoft’s cloud platform.
Other significant investors include:
- Venture capitalist Peter Thiel (early backer)
- Elon Musk (initial founder, though no longer involved)
- SoftBank
- Atreides Management
The investment structure limits returns to investors. After a certain profit threshold, additional returns go back to the nonprofit side of OpenAI.
Microsoft’s substantial stake has raised questions about OpenAI’s independence. However, OpenAI maintains that despite the investment, it remains “an entirely independent company governed by the OpenAI Nonprofit.”
OpenAI’s Leadership Team
Sam Altman serves as the CEO of OpenAI, guiding the company’s strategic direction and public presence. His brief removal and subsequent return in late 2023 highlighted the power dynamics between leadership and the board.
The current board of directors includes:
- Bret Taylor (Chair)
- Adam D’Angelo
- Larry Summers
- Other independent directors
The nonprofit board maintains ultimate control over the company’s direction. This governance structure creates checks and balances designed to ensure AI development proceeds safely and benefits humanity broadly.
OpenAI’s executive team combines expertise in AI research and business development. They face the challenging task of balancing commercial success with the organization’s stated mission of developing artificial general intelligence that benefits all of humanity.
Technological Advancements and Strategic Direction
OpenAI’s technological journey has been shaped by its mission to develop safe AI that benefits humanity while navigating complex partnerships and ethical considerations.
Pioneering AI and AGI: A Quest for Benefiting Humanity
OpenAI has positioned itself at the forefront of artificial intelligence research, with a stated goal of creating artificial general intelligence (AGI) that benefits all of humanity. The company’s flagship product, ChatGPT, represents a significant milestone in natural language processing capabilities. When it was released to the public in late 2022, it quickly gained over 100 million users.
The company continues to push boundaries with newer models like GPT-4, which demonstrates improved reasoning capabilities and reduced hallucinations compared to previous versions. OpenAI has also ventured into multimodal AI, developing systems that can process both text and images.
While originally founded with open-source principles, OpenAI has shifted toward more closed development practices. This change has sparked debates about transparency in AI advancement.
Collaborations and Controversies
Microsoft’s deep integration with OpenAI goes beyond financial investment. The tech giant provides crucial computing infrastructure through its Azure cloud platform that powers OpenAI’s most advanced models.
This partnership has faced scrutiny from regulators concerned about market concentration. Some critics worry that Microsoft’s significant stake could influence OpenAI’s decision-making toward commercial interests rather than its original mission.
Other notable collaborations include:
- Partnership with Bain & Company to implement AI solutions for businesses
- Integration of ChatGPT into various enterprise applications
Legal challenges have emerged as well. In 2023, OpenAI faced a lawsuit regarding its training data practices. This highlighted tensions between rapid AI advancement and proper attribution of source materials.
Future Aspirations and Safety Concerns
OpenAI maintains that safety remains central to its mission. The company has established dedicated teams focusing on alignment research—ensuring AI systems act according to human values and intentions.
Their approach to safety involves:
- Deploying models gradually with increasing capabilities
- Testing extensively before public release
- Building in safeguards against harmful outputs
A significant concern surrounding AGI development is the potential for misuse or unintended consequences. OpenAI acknowledges these risks while continuing to advance its technology.
The company has advocated for appropriate regulation of AI, participating in policy discussions globally. This stance reflects an understanding that technological advancement must be paired with ethical frameworks.
OpenAI’s future direction will likely balance pushing AI boundaries while addressing growing calls for explainable AI (XAI) that makes decision-making processes transparent to users.
Frequently Asked Questions
OpenAI has a complex ownership structure that has evolved significantly since its founding. The organization operates under a unique model that balances profit-seeking with its original mission of ensuring AI benefits humanity.
What is the organizational structure of OpenAI?
OpenAI has a unique hybrid structure. It consists of a non-profit foundation (OpenAI Nonprofit) and a for-profit company (OpenAI LP).
The non-profit foundation fully owns and controls OpenAI General Partner LLC. This structure was designed to ensure the company remains committed to its original mission while attracting necessary investment.
The for-profit entity operates under a capped-profit model, limiting investor returns to encourage focus on safety and societal benefit rather than just maximizing profit.
Can you provide a brief history of OpenAI’s ownership?
OpenAI was founded in 2015 as a non-profit organization by several tech leaders including Elon Musk and Sam Altman. Initial funding came from these founders and early supporters.
In 2019, OpenAI restructured to create a for-profit arm (OpenAI LP) to attract larger investments while maintaining its mission. This allowed for the significant capital needed for AI research.
Microsoft made its first major investment in 2019, followed by larger investments in subsequent years. By 2023, Microsoft had invested approximately $13 billion in the company.
Who currently holds the CEO position at OpenAI?
Sam Altman serves as the CEO of OpenAI. He was one of the original co-founders of the organization in 2015.
Altman briefly left the position in November 2023 after being removed by the board, but was quickly reinstated following employee and investor pressure. This event led to significant changes in OpenAI’s board composition.
Have there been any recent changes in OpenAI’s major shareholders?
Microsoft remains OpenAI’s largest external investor, owning approximately 49% of the company’s equity. This stake was confirmed following Microsoft’s substantial investments through 2023.
The ownership structure includes the original non-profit foundation maintaining control over the company’s direction. Other investors and employees hold the remaining equity stakes.
No major ownership changes have been publicly announced in early 2025, though the company continues to evolve its governance structure.
How is OpenAI’s valuation determined, and what are its latest estimates?
OpenAI’s valuation is determined through investment rounds where investors purchase equity at agreed-upon prices. The company’s revolutionary AI products like ChatGPT drive its value.
Recent funding discussions have placed OpenAI’s valuation in the tens of billions of dollars. The company’s unique capped-profit model affects how valuation is calculated compared to traditional startups.
OpenAI’s commercial success with products like ChatGPT and its API services has significantly contributed to its rising valuation since 2022.
What are the known affiliations between OpenAI and notable tech personalities?
Elon Musk was a co-founder and early funder of OpenAI but left the board in 2018. He has since become critical of the organization’s direction and commercial focus.
Sam Altman, a prominent figure in Silicon Valley and former president of Y Combinator, has been central to OpenAI’s development as CEO.
Microsoft’s CEO Satya Nadella has been publicly supportive of OpenAI, especially during leadership crises. The Microsoft-OpenAI partnership represents one of the most significant collaborations in the AI industry.
