OpenAI Acquires Jony Ive’s Startup for $6.5 Billion
OpenAI has struck a deal to acquire io Products, the hardware startup founded by former Apple design chief Jony Ive, in a transaction valued at $6.5 billion, according to a recent report by Reuters. As part of the acquisition, OpenAI will bring Ive on board to lead the design and creative development of new devices tailored for the AI era.
The acquisition marks a significant expansion into hardware for OpenAI, best known for its popular AI chatbot ChatGPT. Ive’s design firm, LoveFrom, has been collaborating with OpenAI for two years on AI device concepts. The deal, structured as an all-stock transaction based on OpenAI’s $300 billion valuation, gives the AI company full control of io Products, in which it previously held a 23% stake.
OpenAI CEO Sam Altman and Ive hinted at an undisclosed prototype in development, describing it as groundbreaking technology that could redefine how users interact with AI. The partnership aims to combine OpenAI’s AI capabilities with Ive’s product design expertise, which helped design iconic Apple devices, including the iPhone, iPad, iPod, and MacBook Air.
This move comes as several AI hardware startups have struggled to gain traction, with products like Humane’s AI Pin facing criticism for technical limitations. Neither company disclosed specific timelines for bringing new devices to market.
