OpenAI Acquires iPhone Designer Firm for AI Devices
- SAN FRANCISCO – OpenAI is set to acquire io Products, the hardware startup founded by former Apple design chief Jony Ive, in a deal valued at approximately $6.5...
- The acquisition marks a significant step for OpenAI as it expands beyond software and ventures into the realm of artificial intelligence-driven devices.
- Altman and Ive envision their initial product as a groundbreaking innovation.
OpenAI Acquires Jony Ive’s Hardware Startup, io products, for $6.5 Billion
Table of Contents
- OpenAI Acquires Jony Ive’s Hardware Startup, io products, for $6.5 Billion
- OpenAI Acquires Jony Ive’s Hardware Startup, io products, for $6.5 Billion: Your Burning Questions Answered
- What happened with OpenAI and Jony Ive’s io Products?
- Who is Jony Ive, and what’s io Products?
- Why is OpenAI Acquiring io Products?
- What exactly will io Products make?
- What’s Jony Ive’s perspective on this new venture?
- How did OpenAI’s Sam Altman get involved with io Products?
- Who else invested in io Products?
- How will io Products integrate with OpenAI?
- What was the market reaction to this acquisition?
- Will this new AI hardware make smartphones obsolete?
- What are the financial details of the deal?
- When is the acquisition expected to close?
- What’s the significance of the acquisition for the future of AI hardware?
- Key People Involved:
SAN FRANCISCO – OpenAI is set to acquire io Products, the hardware startup founded by former Apple design chief Jony Ive, in a deal valued at approximately $6.5 billion, according to sources familiar with the matter.
Strategic Move into AI Hardware
The acquisition marks a significant step for OpenAI as it expands beyond software and ventures into the realm of artificial intelligence-driven devices. OpenAI CEO Sam Altman has expressed enthusiasm for the collaboration, hinting at a new standard of quality in consumer hardware.
Altman and Ive envision their initial product as a groundbreaking innovation. Ive, in a conversation with Altman, noted a “restlessness” among consumers, signaling a desire for novel technology.The launch of the first devices is anticipated in 2026, though specific details remain undisclosed.
“Artificial intelligence is an astounding technology, but great tools require work at the intersection between technology, design and understanding of people and the world.No one can do this as Jony and their team; the attention they pay to each aspect of the process is extraordinary,” Altman said.
Ive’s Outlook
Ive, 58, a British designer who previously shaped the iPhone, iPod, iPad, and Apple Watch during his tenure at Apple, shared his excitement about the new venture. “I have the growing feeling that everything I have learned in the last 30 years has taken me to this moment,” Ive said. “Even though I feel anxious and excited for the responsibility of the critically important work I have ahead,I am very grateful for the opportunity to be part of such an important collaboration. Sam’s values and vision and OpenAi and IO teams are a rare source of inspiration,” he added.
Background on Ive and io Products
After departing Apple in 2019, Ive established LoveFrom, a design and engineering firm. In 2024, he co-founded io Products with Scott Cannon, Evans Hankey, and Tang Tan, all former Apple employees. Hankey, who succeeded Ive as Apple’s design chief, oversaw the design of iPhone products and the Apple Watch until 2023. Cannon previously co-founded the Mailbox email submission, later acquired by Dropbox. Altman’s involvement with Ive began two years prior to the acquisition, with Altman acquiring a 23% stake in io last year.
Following the acquisition, the io team will integrate with OpenAI’s research, engineering, and product teams in San Francisco.
Market Reaction
Following the announcement, Apple’s stock experienced a decline of more than 2%. The company,led by CEO Tim Cook,has faced increasing competition in the artificial intelligence sector from companies like OpenAI,Microsoft,Alphabet,and Amazon.
Despite the rise of AI, ive and Altman do not foresee the imminent demise of the smartphone. “In the same way as smartphones They have not made laptops disappear,I don’t think our first product will make the smartphones. it is something totally new,” Altman said.
Deal details
openai will reportedly pay $5 billion in shares for the remaining 77% of io Products, valuing the company at $6.5 billion overall.
Other investors in io Products include Laurene Powell Jobs, widow of Steve Jobs, through her Emerson Collective, as well as Sutter Hill Ventures, Thrive Capital, Maverick Capital, and SV Angel.
The acquisition is expected to close this summer, pending regulatory approvals. The deal will bring approximately 55 hardware engineers, software developers, and manufacturing experts to OpenAI, bolstering it’s efforts to create a new generation of AI devices.
“It reminds me of when I emigrated to the United States three decades ago. as a designer,I was attracted to the exciting and innocent optimism of Silicon Valley,collaborating with people motivated to create incredible products to improve humanity,” Ive said in a video.
OpenAI Acquires Jony Ive’s Hardware Startup, io products, for $6.5 Billion: Your Burning Questions Answered
What happened with OpenAI and Jony Ive’s io Products?
OpenAI is acquiring io Products, a hardware startup founded by Jony Ive, the former design chief at Apple.The deal is valued at approximately $6.5 billion. This marks a important move for OpenAI, expanding its focus beyond software into the realm of artificial intelligence-driven devices.
Who is Jony Ive, and what’s io Products?
Jony Ive is a renowned British designer known for shaping iconic Apple products like the iPhone, iPod, iPad, and Apple Watch. After leaving Apple in 2019, he founded LoveFrom, a design and engineering firm. In 2024, he co-founded io Products with other former Apple employees. io Products is a hardware startup focusing on new technology.
Why is OpenAI Acquiring io Products?
OpenAI CEO Sam Altman has expressed enthusiasm for the collaboration, indicating a push toward a new standard of quality in consumer hardware. This move allows OpenAI to venture into AI-driven devices, combining its AI expertise with Ive’s design and hardware experience.The initial product,according to Altman and Ive,is envisioned as groundbreaking innovation.
What exactly will io Products make?
While specific details about io Products’ first devices remain undisclosed, they are expected to be a “groundbreaking innovation,” as stated by Altman. The launch of the first devices is anticipated in 2026. OpenAI and Ive are working at the intersection of technology, design, and understanding of people and the world.
What’s Jony Ive’s perspective on this new venture?
Ive is excited about the opportunity, expressing a feeling that his past experience has led him to this moment. He is grateful for the collaboration and is motivated by the values and vision of Sam Altman and the OpenAI and IO teams. he sees the ability to “improve humanity”.
How did OpenAI’s Sam Altman get involved with io Products?
Altman initially acquired a 23% stake in io Products, two years before the acquisition agreement.
Who else invested in io Products?
Other investors in io Products include:
Laurene Powell Jobs (through her emerson collective)
Sutter hill Ventures
Thrive Capital
Maverick Capital
SV Angel
How will io Products integrate with OpenAI?
Following the acquisition, the io team will integrate with OpenAI’s research, engineering, and product teams in San Francisco. This will bring approximately 55 hardware engineers, software developers, and manufacturing experts to OpenAI.
What was the market reaction to this acquisition?
Apple’s stock declined by more than 2% following the declaration. This reflects the increasing competition Apple faces in the artificial intelligence sector from companies like OpenAI, Microsoft, Alphabet, and amazon.
Will this new AI hardware make smartphones obsolete?
Despite the rise of AI,neither Ive nor Altman foresee the imminent demise of the smartphone.They suggest that their first product is something entirely new, not a direct replacement for existing devices.
What are the financial details of the deal?
OpenAI will pay $5 billion in shares for the remaining 77% of io Products, valuing the company at $6.5 billion overall.
When is the acquisition expected to close?
The acquisition is expected to close this summer, pending regulatory approvals.
What’s the significance of the acquisition for the future of AI hardware?
This acquisition signals a strong move toward the integration of design, hardware, and AI. Jony Ive’s expertise in design,combined with OpenAI’s AI prowess,aims to create a new generation of AI devices. The deal brings together expertise from various fields, including:
Design: Jony Ive’s experience.
AI: OpenAI’s knowledge and research.
Engineering: 55 hardware engineers, software developers, and manufacturing experts.
Key People Involved:
| Person | Role | Previous Role (Relevant) |
| —————— | ————————————— | ——————————– |
| Sam Altman | OpenAI CEO | N/A |
| Jony Ive | Founder, io Products; Design Expert | Former Apple Design Chief |
| Scott cannon | io Products Co-founder | Former Apple Employee |
| Evans Hankey | io products Co-founder | Former Apple Design Chief |
| Tang Tan | io Products Co-founder | Former Apple Employee |
| Tim Cook | Apple CEO | N/A |
| Laurene Powell Jobs | Investor in io products | Widow of Steve Jobs |