OpenAI’s $6.5 Billion Surprise Move!

OpenAI to acquire Jony Ive’s AI startup for $6.5B.

OpenAI is acquiring Jony Ive’s AI startup “io” in a $6.5 billion all-stock deal. This is OpenAI’s largest acquisition to date and a strong move toward hardware. The deal is expected to close this summer pending regulatory approval.

Around 55 employees from "io" will join OpenAI to work on new AI-powered hardware. Their first joint product is expected in 2026. The companies have already collaborated for the past two years.

The "io" startup is part of LoveFrom, Jony Ive’s independent creative design firm launched in 2019. The company was co-founded last year by Jony Ive and former Apple engineers Scott Cannon, Evans Hankey, and Tang Tan.

OpenAI released a joint video interview featuring CEO Sam Altman and Jony Ive, where they discussed building a “family of devices”. While the 10-minute video reveals few specifics, it hints at ambitious goals.

According to The Wall Street Journal, the first OpenAI hardware will be a “pocket-sized, context-aware, screen-free device.” It will not be smart glasses or a wearable, but fully aware of the user's surroundings. It's being developed as a third-core device alongside laptops and smartphones.