OpenAI Acquires iPhone Designer’s Startup io for $6.5 Billion

OpenAI has acquired Jony Ive's startup io, valued at approximately $6.5 billion, bringing Ive and his design collective LoveFrom into a pivotal creative role to develop a new generation of AI-powered hardware. Ive, renowned for his design leadership at Apple on iconic products like the iPhone and Apple Watch, will oversee deep design responsibilities for both OpenAI and io, though not as a full-time employee. The collaboration aims to create innovative AI-native devices that move beyond traditional screens, potentially redefining how people interact with AI technology and possibly complementing or replacing smartphones by 2026. OpenAI CEO Sam Altman emphasized the need for a revolutionary interface for AI that combines technology, design, and human understanding, expressing optimism about the partnership’s potential to inject creativity and delight reminiscent of early Apple products. While specific product details remain under wraps, speculation includes groundbreaking gadgets such as wearables or other novel device categories intended to reduce digital distractions and improve user experience. The partnership reflects OpenAI's strategic push into consumer hardware, leveraging Ive's design expertise to realize ambitious visions for the future of AI interaction.