OpenAI buys Jony Ive's start-up for $6.5B—to create AI devices
What's the story
OpenAI is making a major move into hardware by acquiring Io, a start-up founded by famed Apple designer Jony Ive, in a $6.5 billion deal. The partnership aims to develop a new generation of AI-native devices that blend cutting-edge design with powerful artificial intelligence. This comes at a time when AI is transforming how we interact with technology—reshaping everything from software development to content creation—with simple text prompts.
Acquisition details
OpenAI acquires Ive's start-up 'Io'
The deal, which is an all-stock transaction, will bring Ive's team of around 55 engineers and researchers into OpenAI. It marks the largest acquisition in OpenAI's history and will help create "a new family of products" for artificial general intelligence (AGI). The emphasis will be on creating hardware that improves user interaction with AI technology. Ive's another firm, LoveFrom, will assume creative and design responsibilities across OpenAI.
Future outlook
Ambitious vision for AI devices
Although the exact details of these devices are yet to be revealed, both Ive and OpenAI CEO Sam Altman have promised to unveil more information in the coming year. Ive has described his vision for these AI devices as "galactic," with the goal of creating "amazing products that elevate humanity." The collaboration could redefine AI tech, especially at a time when devices like the Rabbit R1 and Humane Pin have struggled to gain traction.