Jony Ive to Lead OpenAI Design After $6.5B Firm Acquisition
▼ Summary
– OpenAI is acquiring io, a device startup co-founded by Sam Altman and Jony Ive, in an all-equity deal valuing io at $6.5 billion, with Ive leading creative work at OpenAI.
– The collaboration aims to develop AI-powered consumer devices, including one that moves “beyond screens,” with the first products expected in 2026.
– Jony Ive’s involvement could help OpenAI compete with Apple in hardware, as Apple struggles to keep pace with AI advancements from rivals like OpenAI and Google.
– Io’s team of 55 engineers and designers, many ex-Apple employees, will join OpenAI, while Ive retains control of his independent design firm, LoveFrom.
– OpenAI’s acquisition marks its largest ever, costing $5 billion to fully acquire io, following a prior 23% stake and separate investment by the OpenAI Startup Fund.
OpenAI has made a landmark acquisition, bringing legendary designer Jony Ive on board to spearhead its hardware ambitions. The company finalized an all-equity deal to purchase io, the secretive startup co-founded by OpenAI CEO Sam Altman and Ive, valuing the firm at $6.5 billion. This strategic move positions Ive—the visionary behind iconic Apple products—to lead OpenAI’s design efforts as it ventures into AI-powered consumer devices.
Altman publicly celebrated the partnership, calling Ive “the greatest designer in the world” in a social media post. The collaboration signals OpenAI’s serious push into hardware, potentially challenging Apple in the consumer tech space. Market reactions were immediate, with Apple’s shares dipping 2% following the announcement.
The acquisition integrates io’s team of 55 engineers, scientists, and former Apple designers into OpenAI’s operations. Notably, Ive will maintain his independent design firm LoveFrom while contributing to OpenAI’s projects. Early reports suggest the team is developing next-generation AI devices that could redefine how users interact with technology—possibly moving “beyond screens” with products slated for 2026 release.
This deal represents OpenAI’s largest acquisition to date, with the company paying approximately $5 billion for the remaining stake in io after previous investments. The partnership combines Ive’s three decades of design expertise with OpenAI’s cutting-edge AI capabilities—a fusion that could produce groundbreaking consumer hardware.
The AI hardware market remains wide open, with mixed results from early entrants. While Humane’s AI pin struggled before being acquired by HP, Meta’s smart glasses collaboration with EssilorLuxottica has shown stronger traction. Google recently entered the space with its own AI eyewear partnerships.
Details about OpenAI’s first devices remain under wraps, but Altman hinted at creating more seamless alternatives to smartphones for AI interaction. Industry observers speculate about devices inspired by sci-fi concepts, potentially resembling the AI companion from the film “Her.” With Ive’s track record of revolutionizing personal technology, the tech world is watching closely to see how this partnership will shape the future of AI hardware.
(Source: TechCrunch)
