OpenAI Acquires Jony Ive’s Startup io in $6.4 Billion Deal
OpenAI, the developer behind ChatGPT, has announced the acquisition of io, a hardware startup co-founded by former Apple design chief Sir Jony Ive, in an all-equity deal valued at approximately $6.4 billion.
This move signifies OpenAI’s strategic expansion into consumer hardware, aiming to develop AI-native devices that could redefine human-computer interaction.
Deal Structure and Team Integration
The deal consolidates OpenAI’s existing 23% stake in io, with the remaining 77% acquired for $5 billion in equity.
All 55 employees of io will join OpenAI. Jony Ive will not become a full-time employee but will continue as a consultant while leading his design firm, LoveFrom.
A New AI-Native Device
The partnership between OpenAI and Ive aims to develop a groundbreaking “third core device” that complements smartphones and laptops.
The envisioned product is expected to enable ambient, context-aware AI interactions, moving beyond screen-based interfaces to redefine human-computer interaction.
AI Innovation with Iconic Design
The acquisition highlights OpenAI’s drive to embed artificial intelligence into daily life by developing breakthrough hardware that fuses advanced AI capabilities with the visionary design expertise of Jony Ive.
Expectations for AI-Powered Future
OpenAI CEO Sam Altman expressed optimism about the initiative, suggesting it could generate up to $1 trillion in value.
The first AI-powered consumer device from the collaboration is expected to launch by late 2026.
News Gist
OpenAI is acquiring Jony Ive’s hardware startup io in a $6.4 billion equity deal to develop AI-native consumer devices.
The partnership aims to create a new category of AI-powered hardware, blending cutting-edge technology with iconic design.
The first product is expected by late 2026, targeting transformative user experiences.
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