Former Apple design chief Jony Ive and OpenAI CEO Sam Altman revealed a video and statement on Wednesday teasing a mysterious AI hardware prototype. This announcement coincides with OpenAI’s acquisition of Ive’s emerging device company, io, for nearly $6.5 billion in an all-stock deal. In the video, Altman shared his excitement about the prototype, stating, “Jony recently gave me one of the prototypes of the device for the first time to take home, and I’ve been able to live with it.

I think it is the coolest piece of technology that the world will have ever seen.”

Despite the enthusiasm in the video, it mainly serves as a mutual appreciation forum for both executives and the San Francisco Bay Area. Much of the discussion lacks substantial information about what consumers can expect from the upcoming product, which various reports have dubbed the “iPhone of artificial intelligence.” Altman briefly mentions the prototype and hints that it might lead to something groundbreaking, but detailed insights remain elusive.

Ive points out that the technology we use to access advanced innovations is quite outdated. He argues, “The products that we’re using to deliver and connect us to unimaginable technology, they’re decades old.” This indicates a clear intention to develop something revolutionary, though specifics are still under wraps. The acquisition will bring approximately 55 engineers from io to OpenAI, including notable former Apple executives who have played vital roles in creating iconic products like the iPhone and Apple Watch.

The development team will continue from io’s San Francisco offices to create entirely new AI-powered devices, set for a 2026 launch. Both Altman and Ive emphasize that their products will introduce new ways to interact with AI rather than replace existing smartphones. This development poses a competitive challenge for Apple, which has been slow to establish a leading position in the AI space.

While Apple has integrated some AI functionalities into iOS 18, criticism regarding its AI capabilities has emerged. With Ive now working with OpenAI, Apple may face potential competition from a talent it once retained. The deal is anticipated to close this summer, pending regulatory approval.