OpenAI has announced the acquisition of IO, the AI device startup co-founded by legendary Apple designer Jony Ive, in a $6.5 billion all-stock transaction. This marks the largest purchase in OpenAI’s history and signals a major strategic push into hardware for the company best known for its ChatGPT platform. The deal not only brings the secretive startup and its 55 employees—many of whom are former Apple designers—under OpenAI’s umbrella, but also secures the creative leadership of Ive and his design agency, LoveFrom, for OpenAI’s future product initiatives.
As part of the agreement, Jony Ive will assume expansive creative and design responsibilities across both OpenAI and IO, while LoveFrom will remain an independent entity. The collaboration aims to develop a new generation of AI-powered consumer devices, with the first products expected to launch in 2026. According to reports, these devices are envisioned as “screen-free” and contextually aware, designed to complement existing smartphones and laptops rather than replace them. OpenAI CEO Sam Altman expressed excitement about the partnership, highlighting the opportunity to create innovative hardware that could redefine how people interact with AI technologies.
The acquisition positions OpenAI to compete directly with tech giants like Apple in the consumer hardware market, intensifying the race to integrate advanced AI into everyday devices. The move comes at a time when Apple is perceived to be lagging behind in AI innovation, as reflected by a 2% dip in its stock following the announcement. With Jony Ive’s track record of iconic product design—including the iPhone, iPod, and MacBook Air—OpenAI is poised to leverage his expertise to create transformative AI-native hardware, potentially reshaping the landscape of personal technology.
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(Source: Bloomberg | Reddit | Axios | CNBC)
