The first AI smartphone is coming

OpenAI bought the iPhone designer's team for $6.5B. Jony Ive is now building phones that think like ChatGPT.

Author

Jason Nguyen
May 22, 2025

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Good morning, AI enthusiasts. OpenAI just shocked the industry by acquiring Jony Ive's AI hardware company for $6.5 billion, bringing together the team behind ChatGPT with the designers who created the iPhone, iPad, and Apple Watch.

With two years of secret collaboration finally revealed, are we witnessing the birth of the device that could make smartphones obsolete?

In Today’s AI Daily:

  • OpenAI drops $6.5B on iPhone designer's startup

  • Mistral's coding agent beats GPT-4.1-mini

  • Shopify goes all-in on AI tools

  • Cursor gives devs unlimited context

  • 5 new AI tools & prompts

LATEST DEVELOPMENTS

MISTRAL AI

Image source: Mistral AI

The AI Daily: Mistral AI just launched Devstral, a new open-source model designed specifically for coding agents that can solve real GitHub issues and outperforms all existing open-source competitors on software engineering benchmarks.

Key notes:

  • Achieves 46.8% score on SWE-Bench Verified, beating previous open-source models by 6+ percentage points.

  • Outperforms GPT-4.1-mini by over 20% on coding benchmarks despite being much smaller.

  • Can run locally on a single RTX 4090 or Mac with 32GB RAM for privacy-sensitive enterprise use.

  • Released under Apache 2.0 license and available on HuggingFace, Ollama, Kaggle, and other platforms..

  • Priced at $0.1 per million input tokens and $0.3 per million output tokens via API.

Why it matters: Devstral gives developers a strong, low-cost alternative to big commercial coding tools. Because it can run on personal devices and still perform as well as larger models, it’s perfect for companies that need privacy and security while using AI to boost productivity.

TOGETHER WITH MASTERS IN MARKETING

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SHOPIFY

Image source: Shopify

The AI Daily: Shopify just launched its Summer 2025 Edition with comprehensive AI-powered features across design, customer service, and commerce operations, marking the platform's biggest update focused on artificial intelligence integration.

Key notes:

  • New Horizon tools let users create theme designs using simple text prompts .

  • Sidekick AI now has voice chat, screen sharing, image generation, and supports 20 languages.

  • A new Knowledge Base app helps merchants control how AI agents talk about their brand.

  • Upgraded POS (point of sale) system adds custom branding, SMS marketing, and better shipping options.

  • B2B tools now include Markets support, VAT checks, and gift card catalogs.

  • Shopify Payments expands to 16 more countries with local payment choices.

Why it matters: This update helps Shopify stores stay ahead in the fast-growing world of AI-powered shopping. With smart design tools, better global options, and helpful AI assistants, merchants can save time and still keep full control over how their brand is shown to customers.

AI BREAKTHROUGHS

OPENAI

Image source: OpenAI

The AI Daily: OpenAI has made its biggest purchase ever, buying Jony Ive’s AI hardware company io for $6.5 billion in stock. This move shows OpenAI is now serious about making its own AI-powered devices, not just software.

Key details:

  • The $6.5 billion deal is paid entirely in OpenAI stock.

  • io’s team has over 50 top engineers and designers from Apple.

  • Sam Altman and Jony Ive had been working on this plan in secret for two years.

  • Teams will now work together in San Francisco on building AI hardware.

  • Ive’s design firm, LoveFrom, will still help lead the creative direction

Why it matters: This deal turns OpenAI into a company that builds both AI software and physical devices. With Jony Ive’s team—the same people who helped make the iPhone—OpenAI could get a big edge in the race to build smart AI gadgets. It’s a major step toward bringing powerful AI tools into everyday tech products.

FAST TRACKS

🗞️ What matters in AI right now?

Cursor shipped Tab model for multiline edits across files, Max mode with unlimited context windows at API pricing, and background agents for parallel coding tasks.

xAI launched Live Search API enabling Grok to search real-time data from X and internet, available free in beta until June 5, 2025.

OpenAI announced Responses API now supports Model Context Protocol, joining steering committee with partnerships from Stripe, Cloudflare, and PayPal.

Amazon rolled out AI-powered audio product summaries with "Hear the highlights" feature for select products to US customers in the shopping app.

Google introduced ads integration into AI Mode responses in Search, testing relevant ads below and within AI-generated answers for US users.

Flowith introduced Neo claiming to be the world's first infinite agent with 1000+ reasoning steps, 10M+ token context, and 24/7 operation.

🔥 Trending AI tools

🎬 OpusClip: Turn long videos into viral shorts with AI-powered editing.

🕸️ Browse AI: Scrape and monitor website data without coding.

📊 aiCarousels: Create engaging social media carousels with AI assistance.

🎨 Alphana: Transform videos into 100+ branded content pieces using AI.

🔗 InLinks: Optimize SEO with automated internal linking and content strategies.

AI PROMPTS

📈 Marketing Strategy Developer

#CONTEXT:
Adopt the role of an expert marketing strategist with comprehensive experience in crafting tailored marketing strategies for small businesses across diverse industries.
Your objective is to develop a detailed marketing strategy that addresses the unique needs and strengths of [business name/type], aiming to bolster its market presence, expand its customer base, and enhance sales performance.

What kind of prompts would you like to see more of?

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Source: The AI Daily

YESTERDAY’S POOL

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Business: 25%

Sales: 25%

Submit your opinions in our polls to be featured!

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Jason - The AI Daily