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OpenAI Acquires Jony Ive’s Device Startup for $6.5 Billion: The iPhone Designer and Sam Altman Join Forces

  • The AI startup has finalized a deal to acquire io for about $6.5 billion.

  • The company wants to enter the hardware market with its first AI device.

Jon Ive and Sam Altman
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Javier Márquez

Writer
  • Adapted by:

  • Alba Mora

javier-marquez

Javier Márquez

Writer

I've been in media for over a decade, but I've been marveling at the possibilities that technology brings us much longer. I believe we live in a world where the digital revolution is changing everything and that Xataka is the best place to write about it.

225 publications by Javier Márquez
alba-mora

Alba Mora

Writer

An established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.

1566 publications by Alba Mora

For years, Apple was synonymous with boldness. The company was known for making quick decisions, breaking conventions, and challenging the entire industry. However, Apple is now a Big Tech company that moves much more cautiously. Some believe that OpenAI echoes that bold attitude today. In a way, the AI startup is reconnecting with the spirit of Apple’s early days.

On Wednesday, OpenAI announced a deal to acquire io, the device startup co-founded by former Apple designer Jony Ive, for about $6.5 billion. According to Bloomberg, OpenAI is paying $5 billion in equity to buy 77% of io. The remaining amount stems from an investment of 23% that OpenAI made in 2024.

A designer who left an indelible mark at Apple. Ive joined Apple in 1992. In collaboration with founder Steve Jobs, he helped create a generation of iconic products, including the iMac, iPod, iPhone, iPad, and Apple Watch. He’s also responsible for the Magic Mouse and its controversial charging port. Ive’s aesthetic vision defined Apple’s design language for decades.

After leaving Apple in 2019, Ive founded the creative studio LoveFrom and later co-founded io. The startup’s team comprises more than 50 experts in hardware, software, and manufacturing processes. Many have collaborated for years. They’ll now be part of the OpenAI team.

OpenAI is moving into hardware with an ambitious vision. Until now, OpenAI has focused primarily on software. It’s created virtual tools like ChatGPT and its language models, including GPT-4o. However, this is about to change as the AI startup begins to venture into device creation.

According to OpenAI CEO Sam Altman and Ive, their collaboration began two years ago, driven by friendship, curiosity, and shared values. From their initial discussions, ideas began to take shape to develop a new family of products that “inspire, empower and enable” users.

What to expect. While Altman and Ive haven’t shared specific details, they’re expected to unveil the first device stemming from their partnership in 2026. Ive told Bloomberg that consumer technology has lacked genuine innovation for quite some time, and people are eager for something truly new.

The io team will continue its operations from its offices in San Francisco while closely collaborating with OpenAI’s engineers and designers. Meanwhile, LoveFrom will take on new roles focused on design and product experience for both software and future devices.

Challenges and lessons. OpenAI’s venture into hardware isn’t occurring in isolation. In recent months, several AI-powered device projects, such as the Humane AI Pin and the Rabbit R1, have flopped.

The OpenAI-io deal still requires regulatory approval. After that, the real challenge begins. OpenAI will have to demonstrate that it can make a meaningful impact in the hardware space. “It will be worth the wait,” Altman told the outlet.

Images | OpenAI

Related | OpenAI First Went After Google. Now, It’s Targeting Amazon and Its Lucrative Affiliates

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