OpenAI Acquires Jony Ive’s Startup io in $6.5B Deal, Aiming to Redefine AI-Powered Devices
In a major step toward reshaping the AI hardware landscape, OpenAI has announced its acquisition of io, a stealthy consumer device startup co-founded by OpenAI CEO Sam Altman and legendary designer Jony Ive, in an all-stock deal valuing the company at $6.5 billion, The Wall Street Journal reports.
The acquisition, confirmed Wednesday, also establishes a new creative partnership: Ive and his design studio LoveFrom will now spearhead all design initiatives at OpenAI.
“Thrilled to be partnering with Jony, [in my opinion] the greatest designer in the world,” Altman shared on X. “Excited to try to create a new generation of AI-powered computers.”
Jony Ive Returns to the Forefront of Consumer Tech—This Time, With AI
Jony Ive—renowned for shaping the aesthetic of the iPhone, iPod, and Apple Watch during his time at Apple—is now set to influence the future of artificial intelligence. This move places one of the tech industry’s most celebrated designers at the helm of AI’s transition into consumer devices.
Since the debut of ChatGPT in 2022, OpenAI has aggressively expanded its consumer-facing offerings. Earlier this month, the company brought on Fidji Simo, former Meta executive and Instacart CEO, to lead its consumer division.
With Ive’s leadership in design, OpenAI may now pose a direct challenge to Apple in the hardware space. Apple’s relatively slow progress in advanced AI features has left room for competitors like OpenAI and Google. Reflecting investor concerns, Apple’s stock dropped 2% following the announcement of the Ive-OpenAI partnership.
io: A Secretive Startup with Deep Apple Roots
Founded quietly over the past two years, io has grown into a team of around 55 employees, including engineers, physicists, researchers, and product developers. Many are former Apple veterans, such as Scott Cannon, Evans Hankey, and Tang Tan—all of whom were instrumental in designing some of Apple’s most iconic products.
OpenAI had previously acquired a 23% stake in io through a partnership last year, as reported by The New York Times. The new deal sees OpenAI acquiring the remainder, paying an estimated $5 billion, making this the AI company’s largest acquisition to date.
Importantly, while Ive will lead OpenAI’s design direction, his firm LoveFrom will remain independent and continue to operate on its own.
What Comes Next: Devices “Beyond Screens”
Ive and Altman are reportedly working on a next-gen consumer AI device—one designed to “move beyond screens.” According to Bloomberg, their first product is expected to debut in 2026.
In an official video from OpenAI, Altman described the vision for io as building “a family of AI devices” that enable users to create “all sorts of wonderful things.” Ive expressed his deep personal connection to the project:
“Everything I’ve learned over the last 30 years has led me to this place and this moment,” said Ive. The upcoming device has “completely captured” his imagination, he added.
Ive’s influence will also stretch beyond hardware—he will contribute to the evolution of future versions of ChatGPT and related consumer interfaces, according to The Wall Street Journal.
Can OpenAI Succeed Where Others Have Stumbled?
The AI hardware space remains largely experimental. Altman previously invested in Humane, a company founded by ex-Apple designers, which launched an AI-powered wearable pin. However, after a troubled rollout, the company was acquired by HP and the product line was discontinued.
In contrast, some AI wearables are gaining momentum. Meta’s AI-enabled smart glasses—developed in partnership with EssilorLuxottica—have seen promising adoption. Just this week, Google revealed its own AI eyewear, collaborating with Samsung, Warby Parker, and others.
Still, the future of OpenAI’s device ambitions is far from certain. Altman acknowledged in the same video that using ChatGPT on phones or laptops felt limiting:
“It’s too awkward,” he said, hinting at a desire for more seamless, integrated AI experiences.
Looking Ahead: A Vision Inspired by “Her”?
Initial rumors of OpenAI’s interest in acquiring io surfaced in March, via The Information. The companies were reportedly exploring the creation of a consumer device that mirrors the AI assistant technology portrayed in the film “Her.”
With this acquisition, OpenAI is betting that a tightly integrated blend of design, hardware, and AI could finally unlock a transformative new product category.
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