In a landmark deal that signals a significant shift in the artificial intelligence landscape, OpenAI announced today it will acquire io, the hardware-focused AI startup co-founded by former Apple design chief Jony Ive. The acquisition, valued at approximately $5 billion in stock, underscores OpenAI's ambition to move beyond software and into the physical product realm.

A Marriage of Design and AI

The partnership between OpenAI CEO Sam Altman and Jony Ive has been in development for two years, beginning as a collaboration that evolved into something more substantial. "I have a growing sense that everything I have learned over the last 30 years has led me to this place, and to this moment," Ive stated in the announcement.

OpenAI Acquires Jony Ive’s AI Hardware Startup in $5 Billion Deal to Revolutionize AI-Powered Consumer Devices

The acquisition, expected to close this summer, values io at $6.4 billion, with OpenAI paying $5 billion in stock based on its most recent valuation of $300 billion. The deal brings together OpenAI's expertise in artificial intelligence with Ive's renowned design capabilities, creating what industry observers view as a potentially revolutionary combination.

The Team Behind the Vision

Accompanying Ive in this venture are several former Apple design luminaries, including Tang Tan, Scott Cannon, and Evans Hankey, who led Apple's design department after Ive's departure in 2019. Mark Newson, a longtime collaborator of Ive's, is also part of the team. Under the terms of the deal, Hankey, Tan, and Cannon will join OpenAI, while Ive's design consultancy LoveFrom will remain independent but take over design responsibilities at OpenAI.