OpenAI Acquires Jony Ive Startup for $6.5 Billion

OpenAI has announced its largest acquisition to date, agreeing to purchase io—a hardware startup founded by former Apple design chief Jony Ive—for approximately $6.5 billion in an all-stock deal. Jony Ive and a team of 55, including key former Apple designers, will assume major creative and design responsibilities across OpenAI, influencing the design of future ChatGPT iterations and new AI-centric devices. While specific product details were not disclosed, the collaboration may yield innovations such as a screenless smartphone and aims to redefine human interaction with AI technology. The acquisition, years in the making, is expected to close this summer pending regulatory approval. Jony Ive will not become an OpenAI employee but, through his company LoveFrom, will oversee design for all OpenAI products. The announcement led to a drop in Apple’s shares as OpenAI signals its intent to compete directly with major tech companies.