OpenAI announced on Wednesday that it has acquired Jony Ive’s AI devices startup io for approximately $6.4 billion in an all-equity deal. This acquisition, OpenAI’s largest to date, significantly expands the company’s presence in the AI hardware sector.
Details of the Acquisition
The deal, valued at $6.4 billion, includes OpenAI’s existing 23% stake in io, with the company paying $5 billion for the remaining stake. Jony Ive, known for his work as Apple’s chief design officer, will take on “deep creative and design responsibilities across OpenAI and io.” The io team will integrate into OpenAI, working closely with the research, engineering, and product teams in San Francisco.
Background on io and Jony Ive
io was founded about a year ago by Ive, along with other Apple alumni including Scott Cannon, Tang Tan, and Evans Hankey. Ive left Apple in 2019 to start LoveFrom, a design firm that has worked with clients such as Airbnb, Christie’s, and Ferrari. Ive is renowned for designing many of Apple’s iconic products, including the iPod, iPhone, iPad, and MacBook Air.
OpenAI’s Expansion into Hardware
This acquisition comes as OpenAI continues to expand its capabilities in the AI race. The company has been making significant moves to enhance its hardware operations, including hiring the former head of Meta’s Orion augmented reality glasses initiative to lead its robotics and consumer hardware efforts. OpenAI has also invested in Physical Intelligence, a robotics startup focused on bringing general-purpose AI into the physical world.
Implications for OpenAI’s Future
The acquisition of io and Ive’s involvement represent a significant step for OpenAI as it moves into hardware development. With OpenAI recently valued at $300 billion in a funding round led by SoftBank, the company is well-positioned to make substantial advancements in the AI sector. The integration of io’s team and Ive’s design expertise is expected to play a crucial role in OpenAI’s hardware ambitions and its competitive positioning against other major AI players like Google, Anthropic, and Elon Musk’s xAI.
