OpenAI’s Groundbreaking Acquisition of io for AI-Driven Devices

OpenAI is launching its most ambitious venture in consumer technology by acquiring io, a hardware startup established by the renowned former Apple design chief Jony Ive, in a deal valued at approximately $6.5 billion.

Details of the Acquisition

This acquisition, primarily an all-equity transaction, will integrate about 55 engineers and product developers from io into OpenAI. This includes former Apple veterans like Scott Cannon, Evans Hankey, and Tang Tan, who were instrumental in the creation of the iPhone, iPad, and Apple Watch. OpenAI previously held 23% of io, and this move will enable OpenAI to develop a new generation of devices tailored for artificial intelligence.

Jony Ive’s Role

Although Ive will not be joining OpenAI directly, he will undertake significant creative and design responsibilities across both OpenAI and io. His design firm, LoveFrom, will maintain its independence while contributing its expertise to the collaboration. OpenAI CEO Sam Altman remarked, “AI is an incredible technology, but great tools require work at the intersection of technology, design, and understanding people and the world. No one can do this like Jony and his team.”

Innovation at io

Founded in 2023, io has been developing hardware aimed at harnessing the full potential of generative AI technologies. Speculation suggests that OpenAI and Ive have been working together on a product that aims to revolutionise human interaction with AI, potentially replacing or augmenting smartphones in the future.

Future Products

In a video released by OpenAI, Ive commented, “The products that we’re using to deliver and connect us to unimaginable technology, they’re decades old. Surely there’s something beyond these legacy products.”

Disruptive Potential

While this new device is not positioned as an “iPhone killer,” both Altman and Ive have hinted at its transformative potential. Altman conveyed to Bloomberg that “the smartphone didn’t make the laptop go away, and I don’t think our first thing is going to make the smartphone go away.” He further stated that the prototype he tested at home was “the coolest piece of technology that the world will have ever seen.”

Ive’s Confidence

Ive expressed confidence in the team’s vision, stating, “I am absolutely certain that we are literally on the brink of a new generation of technology that can make us our better selves.”

Anticipated Launch Timeline

The initial products from this collaboration are expected to be launched in 2026. The Wall Street Journal reported that the team has explored diverse concepts, including wearables like headphones and AI-enhanced cameras. Altman and Ive have been collaborating closely on this project for over two years.

OpenAI’s Expansion

This acquisition marks OpenAI’s largest investment to date, following a series of recent purchases, including the $3 billion acquisition of Windsurf, an AI-assisted coding tool, and analytics platform Rockset in 2024.

About LoveFrom

While LoveFrom’s website provides limited information about its projects, the firm reportedly charges up to $200 million annually in client fees, having previously worked with brands such as Airbnb, Christie’s, and Ferrari.

With the io acquisition, OpenAI is making a significant bet on a future where the boundaries between software, hardware, and AI become increasingly blurred, emphasising design’s pivotal role in crafting intuitive and impactful systems.