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OpenAI CFO Champions Bold Investment in AI Hardware as the Future of Tech Shifts

In a major strategic move, OpenAI’s Chief Financial Officer Sarah Friar has voiced strong confidence in the company’s $6.4 billion acquisition of LoveFrom io, the startup co-founded by legendary iPhone designer Jony Ive. Despite io being less than a year old and lacking a commercially released product, Friar believes the bold investment will catalyze the growth of ChatGPT subscriptions and usher in a new era of AI-centric computing.

A Bold Vision Backed by Billion-Dollar Ambition

The deal, announced on Wednesday, marks OpenAI’s most significant hardware investment to date. It’s part of a long-term vision to push artificial intelligence beyond traditional devices like smartphones and laptops, and into custom-built hardware that can fully leverage generative AI capabilities.

“Startups like io are hard to value — they don’t have revenue, they don’t have product yet,” Friar told CNBC. “But what we’re investing in is not just prototypes. We’re investing in world-class product thinkers and builders. Jony Ive and his team understand not only design, but manufacturing, supply chains, and scalability.”

Driving ChatGPT Subscriptions Through Custom Devices

OpenAI’s ChatGPT currently boasts 500 million weekly active users, with monthly actives significantly higher. Friar sees custom AI hardware as a key lever for expanding those numbers, improving user engagement, and increasing subscription revenue.

“Think beyond the phone,” Friar explained. “When people experience AI in new, more immersive ways — devices you speak to, hear from, maybe not even touch — it can fundamentally reshape interaction. That’s where we can create a larger, recurring revenue model.”

A New Platform in the Making: Beyond Touchscreens

Though Friar didn’t disclose specific product details, she hinted at a future where AI hardware doesn’t rely on touchscreens. Instead, the focus is on more human-centric inputs: speech, vision, sound — areas where generative AI models like GPT-4 and its successors excel.

“As we enter this new era of AI, we’re going to need new interfaces,” Friar said. “Humans don’t just swipe and tap — we talk, we observe, we feel. The next-gen platform needs to reflect that.”

This echoes recent comments by Apple executive Eddy Cue, who predicted that AI-first devices may eventually render the iPhone obsolete within a decade. While OpenAI is collaborating with Apple to integrate ChatGPT into iPhones and Siri, Friar clarified that having proprietary hardware is essential to “maximize innovation.”

Strategic Independence and Ecosystem Innovation

Despite ongoing partnerships, including with Apple, OpenAI is clearly aiming to create a broader ecosystem where it’s not reliant on any single platform.

“We’ll work with many partners — Apple included — but if we put all our bets on one platform, we limit ourselves,” said Friar. “Owning the hardware unlocks new layers of innovation and helps us move at the speed our users expect.”

Industry Watch: A New Chapter for AI Computing

This deal positions OpenAI as not just a software powerhouse, but as a company intent on shaping the future of AI-powered hardware. Industry analysts have compared this move to Apple’s original bet on the iPhone — a device that transformed computing forever.

Though hardware development is expensive and risky — especially with a $6.4 billion price tag and no immediate product in hand — Friar remains unfazed. “We’re betting on human potential, design excellence, and the next wave of computing. It’s a long game, but it’s one we’re prepared to lead.”

Final Thoughts

With this acquisition, OpenAI is not just building devices — it's aiming to redefine the human-AI experience. And if successful, the results could be as transformational as the first personal computer or smartphone.