OpenAI announced Wednesday that it is acquiring io, the AI device startup founded by renowned designer Jony Ive, in an all-equity deal valued at approximately $6.4 billion. This marks a major step for OpenAI, pushing the company deeper into hardware development.
Jony Ive’s Role and io’s Integration
Jony Ive will take on “deep creative and design responsibilities across OpenAI and io,” according to OpenAI. The startup io will be integrated into OpenAI, while Ive and his creative firm LoveFrom will continue to operate independently.
Founded just a year ago by Ive alongside Apple alumni Scott Cannon, Tang Tan, and Evans Hankey (who briefly succeeded Ive at Apple), io focuses on developing innovative products designed to inspire and empower users. OpenAI CEO Sam Altman and Ive shared in a joint blog post that io’s team will now collaborate closely with OpenAI’s research, engineering, and product groups in San Francisco.
OpenAI already owns 23% of io and is paying an additional $5 billion to complete the acquisition. Altman praised Ive as “the greatest designer in the world” in a post on X.
This purchase is OpenAI’s largest acquisition to date and follows closely behind the $3 billion acquisition of AI coding tool Windsurf and the earlier purchase of analytics company Rockset.
OpenAI’s move comes as the company races to maintain its lead in generative AI against competitors like Google, Anthropic, and Elon Musk’s xAI. Expanding hardware capabilities is a critical part of that strategy.
To bolster its hardware ambitions, OpenAI recently hired Caitlin “CK” Kalinowski, former head of Meta’s Orion AR glasses, to lead robotics and consumer hardware efforts. The role focuses on integrating AI into the physical world to maximize its societal benefits.
Additionally, OpenAI invested in Physical Intelligence, a San Francisco-based robotics startup valued at $2.4 billion. With investors including Amazon founder Jeff Bezos, the company develops AI-powered robots aiming to bring general-purpose AI into real-world applications.
Ive’s design contributions include Apple’s most iconic products such as the iPod, iPhone, iPad, and MacBook Air, as well as the Apple Park headquarters. After leaving Apple in 2019, Ive founded LoveFrom, which consults for high-profile clients like Airbnb, Ferrari, and Christie’s. While LoveFrom remains independent, io will now collaborate directly with OpenAI.
Author’s Opinion
Bringing Jony Ive’s world-class design expertise into OpenAI signals a critical shift where AI is not just about software but also about the physical devices that deliver intelligent experiences. This marriage of cutting-edge AI and innovative hardware design could redefine how we interact with technology, making it more seamless, intuitive, and human-centered.
