ChatGPT maker OpenAI is planning to build an artificial intelligence (AI)-based hardware device in partnership with Sir Jony Ive and Japanese conglomerate SoftBank Group (OTHEROTC:SFTBY). Ive is a former Apple (NASDAQ:AAPL) executive and the key brain behind the iPhone’s design. He will be instrumental in designing the new device. Meanwhile, Masayoshi Son-backed SoftBank will provide $1 billion in capital to fund the joint project.
OpenAI founder Sam Altman has partnered with Ive to create what they call the “iPhone of artificial intelligence.” At the same time, Son has shown a lot of interest in investing in OpenAI lately and has been in constant touch with Altman. Their shared vision is to create a consumer device that will be based on ChatGPT technology. The device will be intuitive and enable users to generate responses more naturally, a Financial Times report stated.
More on the Joint Venture’s Goals
The three companies that are involved, namely OpenAI, Ive’s LoveFrom, and SoftBank, have roped in talents from within to brainstorm on the design and functioning of the product. The talks are in preliminary stages, with no joint venture company formed yet, and the actual launch of the commercial device could take years. SoftBank, which owns a 90% stake in recently listed British chip designer Arm Holdings (NASDAQ:ARM), is also pushing for Arm’s vital role in the project.
Ive had a significant role in the successful creation of the first iPhone in 2007. However, he left Apple in 2019 as he felt the overdependence and addictiveness of the device had no moral bearing. Ive has always felt that a company should have a moral responsibility towards any invention. He believes excessive screen time indulgence is unhealthy, and with the new venture, he hopes to design a product that is not dependent on the same technology.
Competition in the AI Space
As per recent industry data, smartphone sales are declining, forcing companies to find the next best thing in consumer electronic devices. Tech giant Meta Platforms (NASDAQ:META) is successful in launching the Quest series. At the same time, Amazon’s (NASDAQ:AMZN) Alexa and Echo devices have created much hype. The joint venture between OpenAI, LoveFrom, and SoftBank has the potential to be the “next big thing” in the space.
In the meantime, Microsoft (NASDAQ:MSFT)-backed OpenAI continues to innovate with its ChatGPT technology. Last week, OpenAI updated the ChatGPT model to enable it to see, hear, and talk. Moreover, the firm also introduced DALL-E 3, its upgraded version of the existing text-to-image AI tool. This tool is currently in research preview and will be available to ChatGPT Plus and Enterprise customers in October.
What are the Best AI Stocks to Invest In?
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