OpenAI has announced its largest acquisition to date, purchasing io, the Artificial Intelligence device startup founded by renowned former Apple designer Jony Ive, in an all-stock deal reportedly valued at $6.5 billion. This strategic move marks OpenAI’s most decisive step yet into the consumer hardware market, aiming to merge cutting-edge Artificial Intelligence with world-class product design. The deal will see io’s team of 55 engineers, designers, and researchers, many with backgrounds at Apple, joining OpenAI to establish a new hardware division in San Francisco.
Jony Ive, whose legacy at Apple includes the iPhone and iMac, along with his consultancy LoveFrom, will steer creative direction for upcoming OpenAI and io products. While specifics on upcoming hardware remain confidential, industry sources suggest these devices may move users ‘beyond screens,’ potentially leveraging designs like headphones or camera-equipped wearables. The vision is to deliver Artificial Intelligence-powered products that seamlessly integrate into daily life while minimizing disruptions, setting them apart from current devices such as the smartphone.
Though Ive will not join OpenAI as an employee, he takes on significant creative and design responsibilities across hardware and software projects. LoveFrom will remain independent but will collaborate closely on new experiences. With initial products expected as early as 2026, the partnership signals an industry-wide shift as Artificial Intelligence ventures into tangible, elegantly designed tools and raises the stakes for competitors like Apple, which has been criticized for lagging in Artificial Intelligence innovation. OpenAI CEO Sam Altman emphasized the unique synergy between technology and design prowess, hoping to deliver consumer experiences that inspire and empower, and setting expectations for disruptive innovation at the intersection of Artificial Intelligence and device design.
