OpenAI Acquires Jony Ive’s AI Device Startup in $6.5 Billion Deal to Launch Next-Gen Hardware

OpenAI has announced the acquisition of io Products, a hardware startup founded by former Apple design chief Jony Ive, in a groundbreaking $6.5 billion all-stock deal. The move marks OpenAI’s major push into consumer hardware, transitioning from a software-centric company to one that also builds devices tailored for the AI era. Ive, who co-created iconic Apple devices like the iPhone and MacBook, will join OpenAI as Creative Head, leading the development of innovative AI-integrated products. The partnership aims to rethink how users interact with generative AI through new physical interfaces.

The announcement, made in San Francisco by OpenAI CEO Sam Altman and Ive, signals a desire to break away from the limitations of current mobile platforms. Altman emphasized that the tools we use today are outdated, and hinted at a revolutionary prototype already in development—though no specifics were revealed. OpenAI already owned a 23% stake in io Products prior to the acquisition, which builds on two years of collaboration between the companies.

Founded just a year ago, io Products grew out of Ive’s design firm LoveFrom, which has been working with OpenAI on exploring generative AI’s role in next-gen hardware. Analysts view this acquisition as a strategic move to gain control over a dedicated AI hardware platform, much like Meta’s push with its Quest and Ray-Ban smart glasses. This move also reflects OpenAI’s ambition to escape the confines of Apple’s iOS and Google’s Android ecosystems.

The acquisition is part of a larger expansion strategy at OpenAI. In recent months, the company brought on Caitlin Kalinowski, formerly of Meta’s AR division, to lead its robotics and consumer hardware group. She is tasked with turning AI concepts into tangible consumer products and fostering hardware partnerships. This supports OpenAI’s broader goal of tightly integrating AI into the physical world.

This isn’t OpenAI’s only major purchase. Prior to acquiring io Products, the company acquired Windsurf, an AI-powered coding assistant, and Rockset, a real-time analytics platform. These acquisitions enhance OpenAI’s capabilities in software development and data processing, underscoring a multifaceted strategy to build a vertically integrated AI ecosystem—from backend infrastructure to frontend user experiences.

Source: Nairametric