Summary:
OpenAI acquires Jony Ive's AI startup io in a $6.5 billion all-stock deal, marking its largest acquisition ever
The deal brings Ive and his team of former Apple designers to OpenAI to develop AI-powered hardware devices
First products from the collaboration expected to debut in 2026, aiming to introduce a new computing form factor
The move could challenge Apple, which has fallen behind in AI, with Ive now working on rival technology
OpenAI continues to expand, with other acquisitions like Windsurf in the works
OpenAI is set to acquire io, a secretive AI device startup co-founded by Apple Inc. veteran Jony Ive, in a groundbreaking $6.5 billion all-stock deal. This marks OpenAI's largest acquisition to date, signaling a bold move into hardware development with the legendary designer at the helm.
The Deal That Could Reshape AI Hardware
The acquisition not only brings Ive and his team of former Apple designers into OpenAI's fold but also secures a dedicated unit for crafting AI-powered devices. Ive, known for his work on the iPhone, iPod, iPad, and Apple Watch, sees this collaboration as the culmination of his 30-year career in design.
"I have a growing sense that everything I’ve learned over the last 30 years has led me to this place and to this moment," Ive shared in a joint interview with OpenAI CEO Sam Altman.
A New Chapter for Consumer Technology
This partnership represents a significant shift in the tech landscape, with Ive returning to the consumer technology arena he helped pioneer. The deal, expected to close this summer, will see 55 hardware engineers, software developers, and manufacturing experts from io joining OpenAI to develop a new family of devices.
The Vision Behind the Collaboration
Altman and Ive have been exploring ideas for two years, with their first device slated for a 2026 debut. They aim to create a product that leverages AI in ways never seen before, moving beyond the smartphone to introduce a new computing form factor.
"AI is such a big leap forward in terms of what people can do that it needs a new kind of computing form factor to get the maximum potential out of it," Altman explained.
The Impact on Apple and the Tech Industry
The move could pose challenges for Apple, which has struggled to keep pace in the AI race. With Ive now working on rival technology, the pressure is on for Apple to innovate. Meanwhile, OpenAI continues to expand its reach, with other acquisitions like Windsurf, an AI coding software company, in the pipeline.
The Team Behind io
io was co-founded by Ive alongside Apple alumni Scott Cannon, Evans Hankey, and Tang Tan, bringing together a team with deep expertise in product design and engineering. Their mission at OpenAI will be to develop devices for the era of artificial general intelligence, potentially redefining how we interact with technology.
Looking Ahead
While details on the first product remain under wraps, the collaboration between Ive and Altman promises to deliver something truly novel. As Ive puts it, "People have an appetite for something new, which is a reflection on a sort of an unease with where we currently are."
Comments