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OpenAI Buys Jony Ive’s AI Hardware Startup in $6.5 Billion Deal

OpenAI Buys Jony Ive’s AI Hardware Startup in $6.5 Billion Deal

In a wedding announcement-like post today, OpenAI announced that it is acquiring io, the hardware-based AI startup co-founded by Former Apple executive Jony Ive. Ive has been working with OpenAI CEO Sam Altman on io for two years, and the duo are planning to develop a family of AI devices.

In the video above, Altman and Ive outlined their partnership and what they expect to create as a result of the merger. “I have a growing sense that everything I have learned over the last 30 years has led me to this place, and to this moment,” said Ive. “What we’ve been working on, I think, has completely captured our imagination.”

Altman says Ive gave him a prototype of the first device to allow him to test it. “I’ve been able to live with it, and I think it is the coolest piece of technology that the world will have ever seen,” he said.

Ive has been and will be involved in the design and development of the device, alongside several former Apple design employees who left Apple to co-found io, including Tang Tan, Scott Cannon, and Evans Hankey. They are joined by designer Mark Newson, who Ive has worked with on previous projects. Hankey, Tan, and Cannon will join OpenAI.

“The products that we’re using to deliver and connect us to unimaginable technology, they’re decades old. It’s just common sense to at least think surely there’s something beyond these legacy products,” said Ive.

OpenAI has been discussing an acquisition or partnership with Altman and Ive since April. OpenAI will handle the AI expertise end of things, while io will work on the engineering tasks, and LoveFrom will deal with design.LoveFrom will also take over all design at OpenAI.

While little is known about the device Altman mentione din his remarks, there have been reports of Ive woringon a device described as a screenless smartphone. While there have been similar screen-free voice-based AI devices released over the last few years (the Rabbit R1 comes to mind), they have not had much success with users. However, a partnership between Ive and OpenAI could be the dynamic duo that could pull off such a feat. More information about the device in question is set to come in 2026.

“I am absolutely certain that we are literally on the brink of a new generation of technology that can make us our better selves,” Ive said.

As is usual, OpenAI’s acquisition of io is subject to regulatory approval and if all goes well regulatory-wise the deal is expected to be finalized this summer.