OpenAI is reportedly exploring a potential acquisition of an AI startup co-founded by Apple design chief Jony Ive and OpenAI CEO Sam Altman. The deal could exceed $500 million, according to The Information.

The publication said the venture, called io Products, is developing a range of AI-powered technologies, including a screenless phone concept and smart home devices. However, the company has denied that a phone is in development.

The closely guarded AI hardware initiative was first reported by the New York Times in September. Ive — who is renowned for designing the iPhone, iPad and other iconic Apple products — said he was partnering with Altman to create a new AI-driven computing device aimed at being «less socially disruptive than the iPhone.»

Although few specifics have emerged about the device, Ive and Altman have reportedly secured early-stage backing from investors, including Laurene Powell Jobs, the widow of Apple co-founder Steve Jobs. Funding was expected to reach $1 billion by the end of last year, according to the New York Times.

In addition to acquisition talks, ChatGPT maker OpenAI is said to be exploring strategic partnerships with the venture. If a deal materializes, OpenAI would gain access to both the underlying technology and the core engineering team.

OpenAI didn’t respond to a request for comment. The report arrives as the AI voice assistant landscape grows, with OpenAI, Google, Meta and others racing to advance their chatbot offerings. A deal could also tighten OpenAI’s integration with a hardware player.

Ive’s design firm, LoveFrom — founded after his departure from Apple five years ago — is spearheading the device’s development. The company, co-founded by renowned luxury designer Marc Newson, a key contributor to the Apple Watch, includes former Apple executives such as Tang Tan, who led iPhone hardware design. LoveFrom’s client list includes brands like Airbnb and Ferrari.

‘Maintain its lead’

Jitesh Ubrani, a manager at market research firm IDC, told CNET the move would enable OpenAI to continue expanding across various platforms and make a stronger push into more environments.

«By partnering with a hardware startup, OpenAI can help maintain its lead across these other device types and usage scenarios,» Ubrani said. «Until the launch of AI, smart home hardware innovation [started] to plateau and by combining forces, the two companies could also benefit from growth in this space by injecting AI into the home.»

We now know a price for the Switch 2 Welcome Tour, which acts as a user tutorial for the various new features of the Nintendo Switch 2. According to IGN, the game will cost $10. A representative for Nintendo did not immediately respond to a request for comment.

The console’s specs were mostly unveiled during a Nintendo Treehouse event on April 3. That event also featured the announcement of a new game called Switch 2 Welcome Tour, which acts as a user tutorial for the various new features of the Switch 2. It quickly became controversial, with fans posting online that they thought the game should be free and included with the new console.

Per Nintendo, the game will feature «tech demos, minigames, and quizzes» for players to complete. The primary subject matter is the various new features on the Switch 2, like using the controller as a mouse and the upgraded HD Rumble feature. The game shows off some of the design elements of the Joy-Con controllers. For example, the upgraded HD Rumble feature puts the vibration motors «close to where your hands are holding the controllers» to intensify the vibrations. The minigames award medals, which are then used to access new parts of the game until the player has completed everything.

Read more: The 17 Best Nintendo Switch Games Right Now

Nintendo of America’s Vice President of Product and Player Experience, Bill Trinen, told IGN that there’s enough content in the Welcome Tour to justify the $10 price.

«I think it’s going to be a great product,» he said. It’s really for people that want more information about the system rather than necessarily a quick intro to everything it does. And for that reason and just the amount of care and work that the team put into it, I think it was decided that, ‘Yeah, this feels like $9.99 is not an exorbitant price. It feels like a good value for what you’re getting out of the product.’ «

Should a tutorial game cost money?

Fans have already been criticizing the gaming giant for the prices of its release titles. Mario Kart World is set to go on sale for $80 around the same time the Switch 2 is launched, making it one of the most expensive games Nintendo has ever released. 

The fact that the tutorial game doesn’t come included with the console — as was the case with Astro’s Playroom on the PlayStation 5 — displeased many Nintendo fans, who had something to say about it. 

«That’s definitely a…choice? Not sure I understand the idea of making it paid when it should be a built-in app in every system,» Reddit user Rudy69 said. 

«The audacity to make a game that helps you learn about the Nintendo Switch 2 and make it PAID,» argued X user CanadianZar. «No one is buying this game. Hell… Astro’s Playroom walks all over this and IT WAS FREE.»

Other people expressed interest in learning about the new controls but don’t want to shell out for the tutorial. Instead, their plan is to wait for gaming YouTubers to post Let’s Play videos about the game and watch it from there. 

Read more: I Played the Nintendo Switch 2: Is It Worth It?

Just because people complain doesn’t mean that the game won’t sell well. Per Guide Strats, Breath of the Wild had a huge number of complaints on social media. The game would go on to outsell its own console when it and the original Nintendo Switch launched together in March 2017.

The game is set to launch on June 5, the same day as the Nintendo Switch 2 console. Preorders for the console have been delayed due to the new tariffs imposed by the Trump administration, but the launch date is unchanged.

Nintendo held its Nintendo Switch 2 Direct on April 2, where the company announced that its latest console will be released on June 5 and cost $450 in the US. It also revealed that a handful of Nintendo Switch games will be getting upgraded versions, which have been named Nintendo Switch 2 Editions, and could cost up to $80.

The Switch 2 is backwards-compatible, so you’ll be able to play your current Switch games — albeit with some compatibility issues (PDF). Nintendo said Switch 2 Edition games will be different from your original Switch games, since they may offer improved graphics, unique ways to play the game with the Switch 2 hardware and more.

Here are all the games Nintendo announced will get Switch 2 Editions:

• Super Mario Party Jamboree
• The Legend of Zelda: Breath of the Wild
• The Legend of Zelda: Tears of the Kingdom
• Kirby and the Forgotten Land
• Metroid Prime 4 Beyond
• Pokemon Legends: Z-A
• Sid Meier’s Civilization 7 

Nintendo said the Switch 2 versions of these games will be available in both digital and physical copies. You can view the Switch 2 Editions of some games now at retailers like Target and Walmart, and the Switch 2 Editions of these games will cost you up to $80. 

If you already own the Switch version of one of these games, like Breath of the Wild, you can purchase an upgrade pack to play the Switch 2 Edition version of the game. In an interview with IGN, Nintendo of America’s Vice President of product and player experience Bill Trinen said some upgrade packs will cost $10. 

«For somebody who has bought Tears of the Kingdom or Breath of the Wild, the upgrade packs for those are $9.99,» Trinen told IGN. «If you happen to be a Nintendo Switch Online + Expansion Pack member, both of the Zelda upgrade packs are inclusive within that membership.»

However, it’s unclear how upgrade packs will work with physical versions of these Switch games.

As an example of the new features available, Civilization 7 developer Firaxis said the game’s Switch 2 Edition would support the new console’s mouse control — which makes sense, with the Civilization series traditionally being PC strategy games. Firaxis didn’t say how much upgrading to the Switch 2 Edition would cost.

Nintendo also announced a handful of new games coming to the upcoming console, including Mario Kart World, Kirby Air Riders and Donkey Kong Bananza. Nintendo also announced some third-party games coming to the Switch 2, like Elden Ring, Split Fiction, Borderlands 4 and Madden.

For more on the Nintendo Switch 2, here’s what we know about the upcoming console.