OpenAI has announced its most significant acquisition to date: an all-stock deal valued at an estimated $6.5 billion to acquire industrial design firm io. This strategic move brings AI hardware startup io, co-founded by former Apple design chief Jony Ive, under the OpenAI umbrella. The acquisition includes io’s 55 employees, with Ive himself joining OpenAI in a pivotal design role.
This collaboration between OpenAI CEO Sam Altman and Jony Ive signals a bold new direction for the AI giant, focusing on the development of a novel family of AI-powered hardware devices that aim to transcend conventional smartphones. While specific product details remain under wraps, Altman has expressed immense enthusiasm for a prototype, describing it as “the coolest piece of technology” he has ever encountered.
According to sources, Ive’s renowned design firm, LoveFrom, will continue to operate independently, maintaining its existing collaborations with other clients. This acquisition underscores OpenAI’s clear ambition to expand its footprint within the burgeoning AI hardware market.
The completion of the deal is contingent on regulatory approval. The first product stemming from this high-profile partnership is anticipated to launch in 2026.
