In a major move shaking up the tech world, OpenAI has acquired io, an AI hardware startup co-founded by former Apple designer Jony Ive and OpenAI CEO Sam Altman. The all-equity deal is valued at $6.4 billion, signaling OpenAI’s leap from software to real-world AI-powered devices.
Founded in 2023, io is a next-gen hardware company focused entirely on AI-first design. Instead of simply adding AI features to tech products, io builds devices with artificial intelligence at the core.
The team is small but powerful, made up of former Apple designers and engineers. These experts are working to create devices that make interacting with AI as natural as talking to a human.
Before the acquisition, OpenAI held a 23% stake in io. With an additional $5 billion investment, it now owns the company entirely. All 55 io employees will be transitioning to OpenAI.
Jony Ive won’t join as a full-time employee but will continue as a creative consultant while running his own design firm, LoveFrom. He’ll remain closely involved in shaping the design of future OpenAI products.
OpenAI is moving toward a future powered by AGI (artificial general intelligence) — AI that rivals or surpasses human intelligence. According to OpenAI, the acquisition of io is a crucial step in developing a family of AGI devices.
"We have this opportunity to completely redefine what it means to use a computer." – Sam Altman, CEO of OpenAI
The goal? Create AI hardware that replaces traditional screens and keyboards with intuitive, natural interaction. Insiders say the upcoming product is "very different from a phone" and "a brand-new surface".
Sir Jony Ive, the mind behind Apple’s iconic devices like the iPhone and MacBook, will contribute to OpenAI’s product design as a creative visionary. His mission is to help build beautiful, functional AI hardware for the AGI age.
This acquisition follows OpenAI’s collaboration with Apple in December 2024, which brought ChatGPT integration into Siri as part of Apple’s new Apple Intelligence suite.
While Apple is cautiously rolling out AI features, OpenAI is moving full speed ahead — expanding its AI ecosystem across software and now hardware.
With io now fully under OpenAI’s wing, the company isn’t just building smarter software like ChatGPT — it's laying the foundation for AI-powered devices of the future. And with design legend Jony Ive helping lead the way, we can expect these tools to be both innovative and beautifully crafted.
This is more than just an acquisition — it’s the start of a new era where we interact with AI seamlessly through the devices we live with every day.
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