By Anjani Kumar, Senior Journalist
OpenAI explores a $500 million acquisition of Jony Ive and Sam Altman’s AI device startup, while India accelerates its own AI ambitions to rival global leaders and empower the Global South.
OpenAI, a San Francisco-based AI research firm, is negotiating the potential acquisition of a startup led by former Apple designer Jony Ive and backed by OpenAI CEO Sam Altman, aiming to develop innovative AI-powered devices. Discussions, ongoing as of May 2025, involve a deal valued over $500 million (approximately Rs. 4,200 crore) to bolster OpenAI’s hardware ambitions. This move coincides with India’s aggressive push to build indigenous AI capabilities, supported by government initiatives, positioning the country as a champion for the Global South.
Details of OpenAI’s Potential Acquisition
The startup, founded in 2023 by Ive’s design firm LoveFrom, is developing AI-driven devices, including a screenless phone-like gadget inspired by the original iPhone’s aesthetic but distinct in functionality. Jony Ive, Apple’s former Chief Design Officer, is credited with shaping iconic products like the iPhone and MacBook. Sam Altman, while not a co-founder, is a key investor and advisor, though his financial stake remains undisclosed. The startup’s product engineering team, including former Apple designers, is part of the deal, but key figures like Tang Tan and Evans Hankey may not join OpenAI.
OpenAI is considering both a full acquisition and a partnership, with the former estimated at over $500 million. The motivation appears to be OpenAI’s strategic pivot toward integrating AI into consumer hardware, competing with firms like Apple and Google. No working prototypes have been confirmed, and the devices may include household AI gadgets beyond the phone-like design. The Information first reported these talks, citing sources close to the negotiations.
India’s Quest for Indigenous AI Development
As global players like OpenAI expand, India is carving its own path in AI innovation, aiming to rival leaders like the US and China. Since 2014, under Prime Minister Narendra Modi’s leadership, India has prioritized self-reliance in technology through initiatives like the IndiaAI Mission, approved in March 2024 with Rs. 10,372 crore ($1.24 billion) over five years. This mission, implemented by the Ministry of Electronics and Information Technology (MeitY), focuses on seven pillars: computing infrastructure, innovation centers, dataset platforms, application development, skills training, startup financing, and ethical AI.
The government is funding indigenous foundational AI models, with proposals invited in January 2025 for startups and researchers to build large language models (LLMs) and multimodal models using Indian datasets. Sarvam AI, selected under the IndiaAI Mission, is developing India’s first indigenous LLM with access to 4,000 GPUs for six months. The Bhashini initiative, supporting 22 Indian languages, exemplifies India’s focus on inclusive AI, making models freely available to developers. A Rs. 1 lakh crore ($12 billion) fund for research and innovation, announced in the 2024 interim budget, supports AI startups, complemented by tax exemptions for AI firms under the “AI for All” initiative.
India’s Self-Reliance Since 2014
Since Modi’s government took office in 2014, India has achieved significant self-reliance across multiple sectors, reducing dependence on imports and fostering global competitiveness:
Technology: The Digital India program, launched in 2015, created the India Stack, a digital public infrastructure (DPI) including Aadhaar, UPI, and eSign, serving 1.4 billion people. UPI handles 50% of global real-time payment transactions by volume, with 144 billion transactions in 2024. The Make in India initiative boosted electronics manufacturing, with mobile phone exports rising from $0.2 billion in FY14-15 to $15.6 billion in FY23-24.
Defense: The Innovations for Defence Excellence (iDEX), launched in 2018, fosters startups to develop indigenous defense technologies, producing drones, robotics, and satellites. Defense exports grew from Rs. 1,521 crore in FY14-15 to Rs. 21,083 crore ($2.5 billion) in FY23-24. Programs like Agnipath and Atmanirbhar Bharat reduced reliance on foreign arms, with 70% of defense procurement now domestic.
Power: India’s renewable energy capacity increased from 35 GW in 2014 to 208 GW by 2024, with solar capacity rising 26-fold to 85 GW. The National Smart Grid Mission and Green Energy Corridors ensure efficient power distribution, supporting India’s 500 GW renewable target by 2030.
Space: The Indian Space Research Organisation (ISRO) achieved global acclaim with missions like Chandrayaan-3 (2023), the first to land on the lunar south pole. India’s space budget grew to $1.7 billion in FY24-25, and private startups like Skyroot and Agnikul are driving commercial space ventures. India’s space diplomacy, including satellite launches for Global South nations, strengthens its leadership.
These achievements stem from policies like Make in India, Production Linked Incentive (PLI) schemes ($27 billion across 13 sectors), and ease-of-doing-business reforms, which reduced 42,000 compliances and decriminalized 3,800 provisions.
Future Prospects for India’s AI Quest
India’s AI ambitions aim to position it as a global hub by 2030. The IndiaAI Mission plans to deploy over 10,000 GPUs, rivaling compute capacities of Western tech giants. Partnerships with Nvidia, Reliance, and Tata to build AI cloud data centers enhance infrastructure. The National Research Foundation (NRF), with Rs. 1 lakh crore, fosters academia-industry collaboration for AI research. With 2.5 million AI-trained professionals, India’s talent pool is a global asset.
Challenges include a shortage of high-end GPUs, reliance on foreign chips, and data privacy concerns. India is addressing these by developing its own GPU within 3–5 years and enforcing the Digital Personal Data Protection Act (2023). By 2027, the AI for All initiative aims to train 10 lakh professionals, focusing on ethical AI to eliminate biases.
Implications for the Global South
India’s AI advancements have profound implications for the Global South, where it is a champion through shared services. UPI’s success has inspired digital payment systems in Africa (e.g., Namibia, Rwanda) and South America (e.g., Peru), with launches planned by 2027. India’s pharmaceutical exports, supplying 50% of global generic drugs, save millions in Africa and the Middle East. ISRO’s satellite launches for nations like Algeria and Mauritius enhance climate and communication capabilities.
India’s open-source AI models, like those under Bhashini, can be adapted for African and Asian languages, fostering inclusive technology. Hosting the 2026 Global Partnership on AI Summit, India will advocate for equitable AI access, countering the Global North’s dominance. By extending its DPI model to AI, India could create a global data commons, ensuring affordable AI solutions for developing nations.
References
[1] The Information, “OpenAI Considers Buying Jony Ive’s AI Startup,” 2025.
[2] Apple, “Jony Ive’s Design Legacy,” 2019.
[3] PIB, “IndiaAI Mission Approved with Rs. 10,372 Crore,” 2024.
[4] IndiaAI, “Call for Proposals for Foundational AI Models,” 2025.
[5] Reserve Bank of India, “UPI Transaction Data 2024,” 2025.
[6] Ministry of Commerce, “Electronics Exports FY23-24,” 2024.
[7] Ministry of Defence, “Defence Exports FY23-24,” 2024.
[8] Ministry of New and Renewable Energy, “Renewable Energy Progress,” 2024.
[9] ISRO, “Chandrayaan-3 Mission Report,” 2023.
[10] Economic Survey 2024-25, Government of India, 2025.
[11] NASSCOM, “AI Talent Pool in India,” 2024.
[12] Reuters, “Nvidia Partnerships with Reliance, Tata,” 2023.
[13] Ministry of External Affairs, “India’s Space Diplomacy,” 2024.
[14] Times of India, “UPI Expansion in Africa and South America,” 2024.
[15] NITI Aayog, “National Strategy for AI,” 2018.
[16] Atlantic Council, “India’s Path to AI Autonomy,” 2025.
[17] Carnegie Endowment, “India’s DPI and AI Governance,” 2025.
[18] X Post, “Sarvam AI Selected for Indigenous LLM,” 2025.
[19] X Post, “AI for All Tax Exemptions,” 2025.
