OpenAI Just Backed a $500M Bet to Replace the iPhone

Good morning AI entrepreneurs and enthusiasts, 

The design legend behind Apple and OpenAI’s forward-thinking CEO have been quietly working on revolutionary AI devices — and now, their innovations might officially fall under OpenAI’s umbrella.

With ideas like "screenless phones" in motion and ex-Apple leaders leading the design charge, could OpenAI’s device become the transformative "iPhone moment" AI hardware has been waiting for?

In today’s AI news:

• OpenAI eyes Jony Ive’s AI hardware startup

• Google adds new features to Gemini Live

• White House Mandates CAIOs

• Top Tools & Quick News

OpenAI explores acquisition of Jony Ive’s AI venture

The News: OpenAI is reportedly in advanced talks to acquire io Products, a stealth-mode AI hardware startup founded by ex-Apple design guru Jony Ive and supported by OpenAI CEO Sam Altman. The company could be valued at over $500M.

The Details:

• io Products is working on AI-powered consumer tech, including a "screenless phone" concept.

• Ive and Altman have collaborated for over a year, jointly raising up to $1B.

• Former top Apple execs like Tang Tan (former head of iPhone hardware) and Evans Hankey are on board.

• The device is created by io Products, designed by LoveFrom (Ive’s firm), and powered by OpenAI’s tech.

Why It Matters: While some may raise concerns over Altman’s dual involvement, this move signals a seismic shift in the AI hardware landscape. A polished, high-performance OpenAI device could not only become the long-awaited breakthrough for AI wearables — it could also challenge Apple’s dominance in consumer hardware. With Siri lagging behind modern AI capabilities and Apple struggling to deliver compelling AI-native experiences, OpenAI's vertical integration of cutting-edge software and bespoke design may leapfrog the status quo, redefining what personal tech looks like in the post-smartphone era.

Gemini Live expands video AI features

The News: Google has broadened the rollout of Gemini Live’s "Project Astra", now reaching more Android users. The expansion brings advanced real-time video and screen-sharing capabilities to Gemini, marking a step forward in AI's contextual awareness. The update is currently live on Pixel 9 and Galaxy S25 devices, and will expand to all Gemini Advanced subscribers at $19.99/month.

The Details:

• Users can now engage with Gemini based on what’s visible through their smartphone camera or shared screen. This includes on-screen content such as a Wikipedia page or real-world objects, which Gemini can summarize or identify through multimodal interaction.

• Rollout includes all Pixel 9 and Galaxy S25 devices. Samsung is offering the feature free to flagship owners, positioning it as a premium differentiator.

• First teased at Google I/O, Astra’s early versions began rolling out last month to advanced users.

Why It Matters: Project Astra marks a pivotal moment not just for Google, but for the entire AI ecosystem. With competitors like OpenAI, Apple, and Meta pushing the boundaries of real-time multimodal interaction, Google's expansion into live camera and screen input positions it to reclaim leadership in ambient AI experiences. Though Astra isn’t quite at full real-time vision yet, its progress signals Google's intent to move beyond reactive chatbots toward proactive, always-on digital companions.Shopify goes all-in on company-wide AI use

White House Mandates CAIOs

The News: Despite the tariff stock drops, the White House has mandated every single federal agency to designate Chief AI Officers (CAIOs) and develop strategies to expand the government’s use of artificial intelligence.

The Details:

• Agencies are instructed to implement minimum-risk management practices for high-impact uses of AI, including bias testing and public disclosures of outcomes.

• A generative AI policy is to be developed in the coming months.

• This directive rescinds previous Biden-era orders intended to place safeguards on AI technology while establishing new governance protocols led by CAIOs.

• Agencies are expected to align with interoperability and procurement standards for American-made systems, with examples like the DHS Generative AI Playbook offering frameworks for ethical AI deployment.

• Solutions like ChatGov are emerging as key enablers, offering secure, customizable generative AI tools within government-approved environments.

Why It Matters: This directive reflects a significant policy shift toward embedding AI across the federal government’s operations, signaling a move from experimentation to structured implementation. CAIOs are charged with developing agency-specific strategies within six months to drive AI integration, particularly in low-risk areas like workflow automation, while managing risks in high-impact use cases such as healthcare diagnostics.

Today's Top Tools:

• Llama 4: Meta’s new open-weight AI models

• Microsoft Copilot: Now with advanced personalization

• Midjourney V7: Draft Mode + voice-enabled creation

• EverTutor Live: Interactive AI tutor with real-time voice

Quick News:

• Meta GenAI leader Ahmad Al-Dahle denies using test sets to boost Llama 4 benchmarks

• Runway drops Gen-4 Turbo — now makes 10s AI videos in 30s

• Google enables multimodal queries using Gemini + Lens

• Krea raises $83M to expand creative AI tools to audio + enterprise

• U.S. media outlets call for AI copyright regulation

• ElevenLabs unlocks MCP server access for voice agents

• University of Missouri creates AI-powered heart monitor shaped like a starfish

That’s your download for today. Let’s build something powerful.