In a recent interview with CNBC’s Kate Rooney, OpenAI CFO Sarah Friar provided an in-depth perspective on the company’s blockbuster $6.5 billion acquisition of IO, the AI hardware startup founded by legendary iPhone designer Jony Ive. Announced just yesterday, the deal has sent ripples through the tech industry, and Friar’s comments today shed light on the strategic thinking behind the move, as well as OpenAI’s ambitious vision for the future of AI-driven hardware.

Friar framed the acquisition as a pivotal step into what she described as a “brand new era of computing.” Drawing parallels to past technological revolutions, she highlighted Ive’s instrumental role in shaping previous paradigms— from the graphical user interface of the PC to the touch-based mobile age with the iPhone. As reported by CNBC, Friar emphasized that AI represents the next frontier, necessitating new platforms and ways of interaction. She suggested that human engagement with technology will become increasingly multimodal, moving beyond touch to incorporate sight, sound, and speech—areas where OpenAI’s models already excel. Partnering with Ive, whom she called the “best in the business,” positions OpenAI to redefine how users experience AI through innovative hardware.

Addressing the eye-popping $6.5 billion valuation for a company without a product, Friar admitted that assigning a precise value at such an early stage is challenging. Instead, she stressed that the investment is a bet on exceptional talent. Beyond Ive, she praised the broader team at IO, singling out Tung Tan, a veteran of Apple’s design triumphs like the iPhone, AirPods, and Apple Watch. Friar underscored the importance of not just envisioning new platforms but also having the expertise to build them—expertise that includes mastering complex supply chains and craftsmanship. This, she argued, justifies OpenAI’s confidence in the long-term potential of the acquisition.

When it comes to the commercial opportunity, Friar was candid about the role hardware could play in driving user engagement with AI. She envisions hardware as a catalyst for getting people excited about AI, expanding beyond the smartphone to capture the imagination. According to her remarks on CNBC, this excitement could translate into multiple revenue streams, such as larger subscriptions for services like ChatGPT. Noting that the majority of OpenAI’s user base currently accesses its products for free, Friar sees hardware as a key “value-add” to encourage upgrades, much like the viral success of Imagen earlier this year prompted increased subscriptions when users encountered paywalls.

Friar also addressed why OpenAI opted for an acquisition rather than deepening its existing partnership with Apple on devices. She explained that single-threading with one partner limits innovation, and OpenAI prefers to collaborate with multiple entities to maximize creativity. While the company continues to work closely with Apple, acquiring IO allows OpenAI to carve out its own path in hardware development, potentially setting the stage for a transformative AI platform.

Friar’s insights reveal a calculated strategy behind the IO acquisition, blending visionary design with OpenAI’s cutting-edge AI capabilities. As the tech world watches, this move could herald the next iconic device in computing history, redefining how we interact with artificial intelligence.