OpenAI Acquires Jony Ive’s Hardware Startup io for $6.5B

OpenAI is acquiring io, a hardware startup co-founded by former Apple design chief Jony Ive, in a $6.5 billion all-stock deal to develop a new family of AI-powered devices, marking OpenAI's largest acquisition to date. This acquisition brings over 50 hardware engineers and designers, including veterans from Apple projects like the iPhone, Apple Watch, and iPad, creating a dedicated hardware division within OpenAI. Ive and OpenAI CEO Sam Altman, who have collaborated for two years, plan to launch their first product in 2026, aiming to redefine human-computer interaction with devices that move beyond traditional screens and smartphones. The new AI devices are described as companions that assist users continuously without needing to unlock phones or open laptops, potentially including screenless devices or wearable AIs. Both Ive's firm LoveFrom and OpenAI will oversee design and creative direction, reflecting a deep integration of hardware and software expertise. This partnership signifies OpenAI's strategic expansion from software to physical AI products, with ambitions to set new standards in innovation and quality.