OpenAI CEO Sam Altman told employees he is developing a secret AI device with former Apple design chief Jony Ive. This device is "not a phone or glasses," Altman stated. They aim to produce a massive 100 million units.

OpenAI, famous for ChatGPT, announced Wednesday it spent $6.5 billion buying Ive's one-year-old startup, io. Despite io having no products yet, Altman predicted this deal will create $1 trillion in value for OpenAI.

Altman described the device as "portable or desktop" and called it the "third foundational device to change how people interact with tech," following the iPhone and MacBook Pro. Sources described it as looking like an iPod Shuffle. He stressed secrecy is vital to stop competitors copying it and called it the "first of multiple devices."

Ive's team is reportedly talking to suppliers to prepare for manufacturing. Altman admitted hitting 100 million units won't happen immediately but vowed to break speed records for consumer electronics launches. The plan carries risks: another Altman-backed ex-Apple startup, Humane, saw a cold reception for its AI Pin. OpenAI also warned shareholders last fall it could lose $44 billion before becoming profitable by 2029.

OpenAI CFO Sarah Friar said the company believes the investment will pay off by boosting ChatGPT subscriptions. She admitted valuing startups like io is "hard," explaining: "You're betting on great people... You have to be able to build it, actually ship it, and figure out the supply chain." Friar added the new device aims to let more people use OpenAI's tech beyond phones, creating new business models. OpenAI currently has 500 million weekly active users.