Totally insane, $6.5B acquihire. But also, all stock deal and OpenAI appears to have an unlimited number of investors waiting to give them money if/when needed.

The obvious answer would be some sort of consumer AI assistant, like Siri but better.

This is a bet that's as insane as the Apple car. They're going to try to get people to buy a specialized device from a company that isn't just a software company but really a B2B API company—the only successful consumer-facing product they have ever released was an accident, a tech demo that went viral.

And what exactly is that device going to do that the iPhone (and smartphones in general) can't already do with at a minimum a few small tweaks to the existing flagships?

In the right context vertical integration can make sense, but hardware is a big stretch for OpenAI right now. They haven't even really pinned down the consumer software angle yet.

I mean for this kind of money and pedigree the obvious answer to me is kill the smartphone level tech.

10 mins I spent watching that weird video in third person dialogue no less, they better deliver something great.

They're not hiring Jonny. He's going to take over design, but basically as an independent contractor with LoveFrom.

I love how aggressive Sam is with this stuff. He’s very smart in this arena. I’m all about OpenAI creating new fun things

Or he thinks OpenAI is really only worth something in the $30B range and he is getting a steal while his currency is hot.

considering that the deal is "an all-stock" one, that would not be a great bet.

Its possible for Jony to think that it is worth more while Sam does not.

Or Jony to like the $6.5B headline, but realize that he is probably only getting $150M.

Acqui-hire startup -> Jony onboard -> new device with OpenAI exclusive features -> Windows Phone is back. /s (kinda)

The first paragraph of the article mentions it's an all-stock deal. No checks where written for this.

> $6.5 billion all-stock deal

It's 6.5 billion in monopoly money. OpenAI has an insane valuation right now, and they're using it to buy stuff with it, as they should.

VCs have too much capital at hand and don't know how to deploy it all.

This is on the back of epic wealth inequality.

I don't know why Jony Ive is seen to be worth billions, but he's obviously not, he's just another shill in the ivory tower.

> I don't know why Jony Ive is seen to be worth billions, but he's obviously not.

Agreed. If it was the only option it would have been worth it to Apple to pay him billions to _leave_. His last 5-10 years at Apple were marked by him ruining a number of products.

VCs don’t have a ton of capital on hand right now, interest rates are high, investments are way down

Broadly, you're right, but again, there is an incredible amount of inequality at the moment, so while 90% of VCs might be strapped for cash, ther other 10% have so much that they are struggling to find worthy investment vehicles that can grow their money-pile. Its a dillema they are in because nothing can justify the volume of investment enough without a sufficiant potential for growth, so any venture that even hints at big enough return, will find itself flush with cash it wont realistically know what to do with.

I've spoken to a small handful of investors who are all saying they have capital to deploy but don't know where. One of them in particular stepped away from AI but they were seeing OTT valuations for AI startups based on what other VCs were doing.

That's 1% of OpenAI allegedly value