OpenAI $6.5B Deal

In today’s email

• News of the Day

• Products that should exist but don’t

• News

• Trending Tools of Day

• Everything else in AI this Day

Read time: 6 min

News of the Day

$6.5B Deal: Jonny Ive Joins OpenAI

OpenAI has officially bought LoveFrom, the design startup led by Jony Ive, Apple’s legendary former designer, for $6.5 billion. The deal gives OpenAI full control, and Jony Ive along with his team will now lead OpenAI’s design and creativity unit. Ive and OpenAI’s CEO Sam Altman, a co-founder of the startup, had secretly worked on AI hardware projects for the past two years.

• OpenAI bought Jony Ive’s design company LoveFrom for $6.5 billion

• Ive and his team will now head OpenAI’s creative and design efforts

• They aim to build a new generation of AI-powered computers

This move displays how OpenAI is getting into AI hardware, perhaps to face tech giants like Apple. With Jony Ive's design flair and Sam Altman's vision, OpenAI has the potential to turn the creation and use of AI tools for ordinary people into something completely new. The announcement immediately resulted in a 2% plunge in Apple's shares-the kind of pulse this industry gives for a new-formed partnership.
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Products that should exist but don’t

🍔 Fast Food Chains Collab (McDonald's x Taco Bell)

A one-time menu with McTacos or Big Mac Burritos.

2nd News of the Day

Your Next Vibe Coding Tool is Here!

Mistral unveils Devstral, a powerful open-source AI model for coding

Mistral brought about an AI model, called Devstral, with the aim of assisting developers on their coding tasks. Being licensed under Apache 2.0, developers can freely use this project even commercially. Devstral is built together with All Hands AI and wins in coding benchmarks against similar models by big tech houses.

• In the SWE-Bench Verified test, Devstral had a better score than the major coding AI models of Google: Gemma 3 27B and DeepSeek V3.

• Hence the model can run on ordinary devices like the Nvidia RTX 4090 or on a Mac with 32GB RAM, making it more user-friendly.

• It facilitates complicated coding tasks such as editing multiple files, code exploration, running software engineering agents, etc.

This shows that the birth of Devstral signals a rapid growth period for the AI coding space. Being commercially friendly in license, highly performant and easy to use, Devstral is a giant leap forward.
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Trending Tools of Day

Macaly
Apps built by conversations, not code

Stitch
Transform ideas into UI designs

Cua
Docker for computer-use agents

Den
Cursor for knowledge workers

CoffeeHub
The easiest way to book time with professionals you admire

Everything else

🍝 Making Waves: Google’s Veo 3 has only been out for a day, and already, creators are doing some really cool things with it. AI storyteller Ari Kuschnir made this viral video in just two hours. Plus, the model might be the first to officially pass the spaghetti test.

🎮 Slippery Slope: On a more unsettling note, people are also using the new Veo to create fake video game livestreams and other believable deepfakes.

⚔️ Head-to-Head: a16z’s Olivia Moore shares a useful breakdown of how Google’s new agentic browser capabilities compare to ChatGPT Operator.

🧑‍💻 Show and Tell: Builder Sherry Jiang shows the exact stack she used to vibe code an app in just three hours that went on to generate $275K in funding.

💬 Missing Link: Cornell researchers say they were able to translate embeddings from one AI model to another without sharing any data between them, suggesting there’s a “universal geometry” that bridges most LLMs.

That’s it for today!

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