For years, Silicon Valley has been trying to figure out if hardware companies can generate venture scale returns, given the example of high-profile, venture capital–backed disappointments like Essential Products and Magic Leap. This challenging environment makes The Information’s recent reporting—that OpenAI CEO Sam Altman and iPhone designer Jony Ive are discussing building an artificial intelligence–powered device—all the more intriguing.
An Ive and Altman product—potentially bankrolled by SoftBank’s Masayoshi Son—has a better shot at success than most startups. The pair will need all the skills, connections and money they can get, given the hurdles facing newcomers. As a reminder of those challenges, Lululemon said earlier this week that it would stop selling internet-connected mirrors. Those are the pricey gadgets made by Mirror, which Lululemon bought in 2020 for $500 million. The sale was a great deal for Mirror’s investors, but the devices seemed destined for the hardware dustbin.
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