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Exploring OpenAi io Appliance

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May 27, 2025

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The acquisition of io by OpenAI for $6.5 billion, founded by British iPhone designer Jony Ive, has paved the way for portable AI technology. The startup has already unveiled a prototype that has caught the attention of OpenAI CEO Sam Altman. While details about the AI companion remain scarce, Ive has clarified that it is not meant to replace smartphones but rather serve as a screenless device to complement desktop setups.

Altman rightly describes this as an extraordinary moment, emphasizing the potential for a profound shift in how we interact with technology. He hopes to evoke the same sense of delight and wonder that he experienced when using an Apple Computer three decades ago.

Io boasts a team of approximately 55 employees, all of whom will join OpenAI except for Ive. Many of these individuals are former Apple designers, indicating the ambitious nature of the project. This move follows the high-profile failures of other AI companion devices like the Humane pin and the Rabbit R1. Another device, Limitless, leverages smartphones to provide AI transcripts of daily conversations as an updated lifelog. However, the io appliance is expected to be significantly more advanced given its impressive lineage.

Europe is exploring various technological avenues, with compelling solutions such as the ARM architecture championed by Apple over the years. Ive reminisces about his move to America three decades ago, drawn by the optimistic atmosphere of Silicon Valley and the collaborative spirit of individuals striving to create groundbreaking products.

As part of OpenAI, the expectation is that the io companion will operate using local reasoning AI agents. The device will heavily rely on its microphone and wireless connections to earbuds and a terminal, whether that be a smartphone or smart glasses. Ive has ruled out the smart glasses form factor for the companion, which will drive advancements in battery technology and charging methods akin to the iPod and iPhone.

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The underlying processing power will be crucial for the io appliance. OpenAI is already developing a custom datacenter AI chip, and this acquisition opens up the possibility of integrating that capability into the io device. By having its own significant computing power, OpenAI can avoid the 30% transaction fee charged on iPhones and retain control over revenue and data, leveraging cellular connections through iPhones for updates.

Memory will play a vital role in the design of the custom chip for the portable AI device. Companies like SureCore in the UK are optimizing AI memory for low power consumption, recognizing the importance of memory efficiency in devices like the OpenAI io product that are expected to interact via voice commands.

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Connectivity and power management are key aspects of portable AI appliances, requiring a balance of ultra-low-power processing and reliable wireless connections for efficient local decision-making at the edge. European companies like Nordic Semiconductor are at the forefront of delivering solutions that enable scalable, portable AI in various applications.

Further innovations in power management, such as chipscale devices from companies like Nanopower in Norway, will facilitate always-on management of peripherals without relying heavily on the central AI processor. The battery technology for these devices will likely be based on well-established lithium-ion chemistry, with the convenience of wireless charging enhancing user experience.

As Jony Ive and Sam Altman collaborate on this highly anticipated AI product, industry experts like Alex Lidow from Efficient Power Conversion (EPC) are eager to see the outcome. Lidow anticipates a cable-free consumer product driven by AI, hinting at the potential for wireless power solutions to enhance user experience and untether consumers from traditional constraints.

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