OpenAI to acquire Apple veteran designer Jony Ive’s startup io in $6.5 billion deal to create AI devices

OpenAI has announced it will acquire io, the AI hardware startup co-founded by legendary Apple designer Jony Ive, in an all-stock deal valued at nearly $6.5 billion. This marks OpenAI’s bold entry into the hardware space.

The acquisition brings Jony Ive — the visionary behind Apple’s iconic products like the iPhone, iMac, and iPad — along with a team of former Apple designers, into OpenAI. Together, they will spearhead the development of a new class of AI-native devices under a dedicated product unit at OpenAI.

In a joint statement posted on Wednesday (May 21), OpenAI CEO Sam Altman and Ive said their shared vision for a new family of AI-integrated products.

Although Ive will not join OpenAI as an employee, his design collective, LoveFrom, will remain independent and will assume deep creative and design responsibilities across both OpenAI and io.

OpenAI revealed that Altman and Ive have been collaborating “quietly” since 2023, envisioning hardware products that seamlessly integrate generative AI technologies like ChatGPT.

The acquisition positions OpenAI to directly compete in the consumer hardware market, offering purpose-built devices optimized for AI interactions — a strategic shift that could redefine how users engage with artificial intelligence.

OpenAI, founed in 2015, rose to global prominence following the 2022 launch of ChatGPT. Microsoft remains OpenAI’s largest investor.

Both OpenAI and LoveFrom are headquartered in San Francisco, further cementing the Bay Area as the epicenter of the next wave of AI innovation.