In a significant development for the tech industry, OpenAI announced on Wednesday a landmark deal with io, a startup co-founded by renowned designer Jony Ive, aiming to revolutionize AI hardware. The agreement, worth nearly $6.5 billion, will see OpenAI acquire io through a $5 billion stock transaction, solidifying its commitment to building next-generation AI-powered devices.
Jony Ive, best known for his iconic design contributions at Apple, including the iPhone, iMac, and iPod, will now play a central creative role in OpenAI’s expansion into consumer hardware. The collaboration marks a strategic shift for OpenAI, positioning it to bring artificial intelligence into everyday devices through advanced, intuitive design.
OpenAI CEO Sam Altman celebrated the partnership on X, formerly Twitter, stating, “Thrilled to be partnering with Jony, IMO the greatest designer in the world. Excited to try to create a new generation of AI-powered computers.” The first hardware products resulting from the partnership are expected to debut in 2026.
Deal Details and Strategic Implications
The transaction, set to close this summer, places IO‘s valuation just under $6.5 billion. This includes the $5 billion in new stock being issued to complete the acquisition, based on OpenAI’s latest valuation of $300 billion. OpenAI had already taken a stake in io as part of an earlier collaboration agreement made last year.
Following the acquisition, io’s team of 55 employees will officially become part of OpenAI. They will form the foundation of a new hardware division, which will be led by Peter Welinder, a longstanding OpenAI executive. The team is expected to play a critical role in designing and delivering AI-integrated consumer products that are not only powerful but also aesthetically and functionally groundbreaking.
Notably, Ive’s independent design firm, LoveFrom, will continue to operate separately from OpenAI. While I will contribute heavily to the design and vision of the new hardware products, LoveFrom will retain its independent status and clientele.
A New Frontier for AI and Consumer Technology
The collaboration between OpenAI and Jony Ive represents a fusion of cutting-edge artificial intelligence and world-class design expertise, setting the stage for a potential paradigm shift in how people interact with AI. With a focus on creating entirely new categories of AI devices, the partnership is expected to yield consumer products that are deeply integrated with OpenAI’s advanced technologies, such as ChatGPT and Codex.
Analysts see the deal as a bold move by OpenAI to move beyond software and large language models into the physical world of consumer hardware. By securing the talents of a legendary designer like Ive, the company signals its ambition to compete with tech giants like Apple, Google, and Microsoft not only in AI capabilities but in user experience and design excellence.
As the world watches closely, the success of this venture could redefine what personal computing and AI-powered devices look like for years to come.
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