OpenAI, the company behind ChatGPT, is said to be in talks to buy io Products, an AI hardware company co-founded by Jony Ive, Apple's ex-chief design officer, and OpenAI CEO Sam Altman. The takeover may be more than $500 million, per a report from The Information.

io Products specializes in creating AI-powered consumer devices, including groundbreaking products like a phone without a screen and other smart home devices. The acquisition would help OpenAI diversify its revenue sources beyond its current core products, including mainly ChatGPT and API services for developers.

Apart from the deal making talks, OpenAI is also courting potential partnerships with io Products. The startup currently has a small team with former Apple designers Tang Tan and Evans Hankey, whose product design and innovation expertise they can bring to the table.

Jony Ive is well known for his lead role in the design of legendary Apple products, such as the iPhone, iPod, and Mac. Following his departure from Apple in 2019, he formed his own design consultancy firm, LoveFrom, and has already confirmed publicly in a past interview with The New York Times that he worked with Altman on this new project.

The pair has already raised early stage funding for io Products, with high profile support coming from the widow of Apple co-founder Steve Jobs, Laurene Powell Jobs. The startup's total funding was reportedly set to hit $1 billion by the close of last year.

Altman also backed a financing round for AI wearable startup Humane Inc. in 2023, known for its screenless brooch that uses a tiny projector to project content onto the wearer's palm. Humane Inc. raised more than $200 million from several investors, including Altman, Microsoft, and Salesforce CEO Marc Benioff. HP acquired portions of Humane's assets earlier this year for $166 million, which signals increasing interest in cutting-edge AI-powered consumer technology.

The possible takeover of io Products by OpenAI is a strategic push to expand its product line and venture into new frontiers in the fast-paced world of AI technology.