Apple Inc. (NASDAQ:AAPL) shares declined after reports surfaced that OpenAI is acquiring Jony Ive’s hardware startup, io Products, in a $6.5 billion deal. The acquisition has fueled investor concerns about rising competition in the consumer device market.

OpenAI's (OPAI.PVT) move to bring Jony Ive into the fold could reshape the artificial intelligence (AI) device race and put fresh pressure on Apple (AAPL). Hope King, founder of Macro Talk News and Yahoo Finance contributor,

Another hint Altman and Ive gave the WSJ is that the product will be "capable of being fully aware of a user’s surroundings and life," and "unobtrusive.'"Again, painting the picture of a small smart pin that you can place anywhere.

OpenAI partners with former Apple design chief Jony Ive, acquiring his startup io for $6.5 billion to develop innovative AI-powered devices.

Apple has become a frequent target for Trump, a factor that has held the stock back as other big tech companies have rebounded over the past month.

Apple's announcement of a sci-fi like brain computing interface shows that the company still has its eye on cutting edge innovation. But it also highlights the challenge weighing on the company's day-to-day business.