Jony Ive

openai,-jony-ive-struggle-with-technical-details-on-secretive-new-ai-gadget

OpenAI, Jony Ive struggle with technical details on secretive new AI gadget

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OpenAI overtook Elon Musk’s SpaceX to become the world’s most valuable private company this week, after a deal that valued it at $500 billion. One of the ways the ChatGPT maker is seeking to justify the price tag is a push into hardware.

The goal is to improve the “smart speakers” of the past decade, such as Amazon’s Echo speaker and its Alexa digital assistant, which are generally used for a limited set of functions such as listening to music and setting kitchen timers.

OpenAI and Ive are seeking to build a more powerful and useful machine. But two people familiar with the project said that settling on the device’s “voice” and its mannerisms were a challenge.

One issue is ensuring the device only chimes in when useful, preventing it from talking too much or not knowing when to finish the conversation—an ongoing issue with ChatGPT.



“The concept is that you should have a friend who’s a computer who isn’t your weird AI girlfriend… like [Apple’s digital voice assistant] Siri but better,” said one person who was briefed on the plans. OpenAI was looking for “ways for it to be accessible but not intrusive.”

“Model personality is a hard thing to balance,” said another person close to the project. “It can’t be too sycophantic, not too direct, helpful, but doesn’t keep talking in a feedback loop.”

OpenAI’s device will be entering a difficult market. Friend, an AI companion worn as a pendant around your neck, has been criticized for being “creepy” and having a “snarky” personality. An AI pin made by Humane, a company that Altman personally invested in, has been scrapped.

Still, OpenAI has been on a hiring spree to build its hardware business. Its acquisition of io brought in more than 20 former Apple hardware employees poached by Ive from his alma mater. It has also recruited at least a dozen other Apple device experts this year, according to LinkedIn accounts.

It has similarly poached members of Meta’s staff working on the Big Tech group’s Quest headset and smart glasses.

OpenAI is also working with Chinese contract manufacturers, including Luxshare, to create its first device, according to two people familiar with the development that was first reported by The Information. The people added that the device might be assembled outside of China.

OpenAI and LoveFrom, Ive’s design group, declined to comment.

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Apple backs out of backing OpenAI, report claims

AI, Apple, Jony Ive, microsoft, openai, sam altman, Tech / /

ChatGPT —

Apple dropped out of the $6.5 billion investment round at the 11th hour.

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The Apple Park campus in Cupertino, California.

Enlarge / The Apple Park campus in Cupertino, California.

A few weeks back, it was reported that Apple was exploring investing in OpenAI, the company that makes ChatGPT, the GPT model, and other popular generative AI products. Now, a new report from The Wall Street Journal claims that Apple has abandoned those plans.

The article simply says Apple “fell out of the talks to join the round.” The round is expected to close in a week or so and may raise as much as $6.5 billion for the growing Silicon Valley company. Had Apple gone through with the move, it would have been a rare event—though not completely unprecedented—for Apple to invest in another company that size.

OpenAI is still expected to raise the funds it seeks from other sources. The report claims Microsoft is expected to invest around $1 billion in this round. Microsoft has already invested substantial sums in OpenAI, whose GPT models power Microsoft AI tools like Copilot and Bing chat.

Nvidia is also a likely major investor in this round.

Apple will soon offer limited ChatGPT integration in an upcoming iOS update, though it plans to support additional models like Google’s Gemini further down the line, offering users a choice similar to how they pick a default search engine or web browser.

OpenAI has been on a successful tear with its products and models, establishing itself as a leader in the rapidly growing industry. However, it has also been beset by drama and controversy—most recently, some key leaders at OpenAI departed the company abruptly, and it shifted its focus from a research-focused organization that was beholden to a nonprofit, to a for-profit company under CEO Sam Altman. Also, former Apple design lead Jony Ive is confirmed to be working on a new AI product of some kind.

But The Wall Street Journal did not specify which (if any) of these facts are reasons why Apple chose to back out of the investment.

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AI hardware company from Jony Ive, Sam Altman seeks $1 billion in funding

AI, Apple, Emerson Collective, Jonathan Ive, Jony Ive, Laurene Powell Jobs, openai, sam altman, Tech, vc / /

AI Boom —

A venture fund founded by Laurene Powell Jobs could finance the company.

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Jony Ive, the former Apple designer.

Jony Ive, the former Apple designer.

Former Apple design lead Jony Ive and current OpenAI CEO Sam Altman are seeking funding for a new company that will produce an “artificial intelligence-powered personal device,” according to The Information‘s sources, who are said to be familiar with the plans.

The exact nature of the device is unknown, but it will not look anything like a smartphone, according to the sources. We first heard tell of this venture in the fall of 2023, but The Information’s story reveals that talks are moving forward to get the company off the ground.

Ive and Altman hope to raise at least $1 billion for the new company. The complete list of potential funding sources they’ve spoken with is unknown, but The Information’s sources say they are in talks with frequent OpenAI investor Thrive Capital as well as Emerson Collective, a venture capital firm founded by Laurene Powell Jobs.

SoftBank CEO and super-investor Masayoshi Son is also said to have spoken with Altman and Ive about the venture. Financial Times previously reported that Son wanted Arm (another company he has backed) to be involved in the project.

Obviously, those are some of the well-established and famous names within today’s tech industry. Personal connections may play a role; for example, Jobs is said to have a friendship with both Ive and Altman. That might be critical because the pedigree involved could scare off smaller investors since the big names could drive up the initial cost of investment.

Although we don’t know anything about the device yet, it would likely put Ive in direct competition with his former employer, Apple. It has been reported elsewhere that Apple is working on bringing powerful new AI features to iOS 18 and later versions of the software for iPhones, iPads, and the company’s other devices.

Altman already has his hands in several other AI ventures besides OpenAI. The Information reports that there is no indication yet that OpenAI would be directly involved in the new hardware company.

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