OPENAI BUYS JONY IVE'S AI HARDWARE FIRM FOR $6.5B

OpenAI

Summary

• Former Apple design chief Jony Ive's hardware startup io sells to OpenAI in all-stock transaction valued at $6.5 billion
• Deal follows two-year partnership between Ive and OpenAI CEO Sam Altman exploring consumer AI devices
• Acquisition represents OpenAI's entry into hardware manufacturing with plans for screen-free consumer products

OpenAI has completed the purchase of io, a hardware company established by Jony Ive following his 2019 departure from Apple. The transaction, structured as an all-stock deal worth $6.5 billion, represents the largest acquisition in OpenAI's history.

Ive established io in 2023 after building a reputation as one of technology's most influential designers during his tenure at Apple. His work at the Cupertino company spanned over two decades and included leadership roles in developing the iMac, iPod, iPhone, iPad, MacBook, and Apple Watch. He held the position of Chief Design Officer until leaving the company four years ago.

The acquisition brings io's 55-person team of engineers, designers, and researchers under OpenAI's umbrella. These employees have been working on what the company describes as products designed to "inspire, empower and enable" users. They will now integrate with OpenAI's research, engineering, and product divisions based in San Francisco.

OpenAI previously held a 23% minority investment in io before moving to acquire the remaining stake. The relationship between the companies began through discussions between Ive and Sam Altman that started two years ago. According to OpenAI's announcement, this collaboration involved Ive's creative collective LoveFrom and centered on shared interests in technology and design.

The partnership evolved from initial conversations into concrete product development work. OpenAI stated that "tentative ideas and explorations evolved into tangible designs" during this period. Following the acquisition, Ive and LoveFrom will take on expanded design and creative roles across both OpenAI and io operations.

Details about the companies' product plans remain limited. However, reporting from the Wall Street Journal indicates the teams are developing consumer devices that would move users "beyond screens". The project reportedly includes consideration of headphones and devices equipped with cameras, though specific product specifications have not been disclosed publicly.

Altman commented on the acquisition by emphasizing the intersection of technology and design in creating effective AI tools. He noted that Ive's team brings particular attention to process and detail that distinguishes their approach to product development.

The deal marks OpenAI's most substantial move into hardware manufacturing as the company expands beyond its software and API offerings. The acquisition comes as multiple technology companies pursue AI-powered consumer devices aimed at creating new interaction paradigms beyond traditional computing interfaces.