In a significant move to expand its presence in the consumer hardware market, OpenAI has announced the acquisition of io, an AI hardware startup founded by former Apple designer Jony Ive, for approximately $6.5 billion.
This acquisition marks OpenAI's largest to date and signifies its strategic entry into developing AI-integrated devices.
Jony Ive, renowned for designing Apple's iconic products like the iPhone, iPad, and iMac, will now lead hardware and design efforts at OpenAI.
The collaboration aims to create innovative consumer products that leverage OpenAI's advanced AI technology, moving beyond traditional screen-based interfaces.
While specific product details have not been disclosed, both Ive and OpenAI CEO Sam Altman have expressed a shared vision for developing AI-native devices that offer a more natural and intuitive user experience.
The acquisition includes OpenAI's existing stake in io and brings together a team of 55 experts in hardware and software. Ive's design firm, LoveFrom, will continue to operate independently. The deal is expected to close during the summer of 2025.
This strategic move underscores OpenAI's commitment to integrating AI into everyday consumer experiences, positioning the company to compete with tech giants like Apple and Google in the evolving AI landscape.