OpenAI has been working for quite a while now with the famous Apple designer, Jony Ive, to come up with a consumer AI device, one that would supposedly render smartphones obsolete, devastating Apple's legendary moat around its iPhones in the process.
Now, we have just received the clearest sign yet that OpenAI is indeed working on such a device. What's more, Microsoft will no longer exercise any influence over the upcoming "Apple iPhone killer."
OpenAI and Microsoft have successfully renegotiated their tie-up, removing the latter's influence over the former's upcoming "Apple iPhone killer" consumer device, among other things
Microsoft and OpenAI have re-negotiated their partnership, paving the way for the creator of ChatGPT to finally go public. The deal includes the following:
- OpenAI's Artificial General Intelligence (AGI) status will now be determined by an independent panel of experts.
- Formalizes Microsoft's IP claims in relation to OpenAI's technology.
- Allows the creator of ChatGPT to develop some products in partnership with third parties.
- Microsoft can independently pursue AGI.
- OpenAI will have to continue sharing revenue with Microsoft until its AGI status has been confirmed by the envisaged panel of experts.
- OpenAI will purchase Azure services worth $250 billion, and Microsoft loses its right of first refusal on OpenAI compute tenders.
Critically, the terms of the deal include the following tidbit:
"Microsoft’s IP rights now exclude OpenAI’s consumer hardware."
This means that Microsoft will no longer be able to exercise any influence over OpenAI's upcoming consumer devices, including the one it is designing with the famous Apple designer, Jony Ive. Do note that the creator of ChatGPT purchased Ive's AI device startup, io, for $6.4 billion back in May 2025.
As per the latest available news on the device's status, OpenAI has hired around two dozen Apple employees, including designers, hardware engineers, and user interface specialists, to work on the so-called "Apple iPhone killer."
Some of these prominent hires from Apple include Matt Theobald, a manufacturing design expert, and Cyrus Daniel Irani, the lead on human interface design.
Here is everything that we know about OpenAI's upcoming consumer AI device:
- It is expected to be a screenless, pocket-sized device.
- It will have contextual awareness via a suite of sensors, including cameras and microphones.
- The device will be able to run OpenAI's tailored AI models locally, with cloud computational support available for more compute-intensive tasks.
- The device will be able to communicate with its peers, akin to what we currently do with smartphones.
- The device won't bear the form factor of a wearable.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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