OpenAI Buys Jony Ive's AI Hardware Startup for $6.4B, Signaling Big Hardwar

Published Date : 22/05/2025 

OpenAI has announced the acquisition of Jony Ive's AI devices startup, io, for $6.4 billion. This significant deal positions OpenAI to expand its hardware capabilities, leveraging Ive's renowned design expertise. 

OpenAI has made a major move into the hardware sector by acquiring Jony Ive's AI devices startup, io, for approximately $6.4 billion. This all-equity deal is a significant step for the artificial intelligence company, further solidifying its position in the tech landscape.

Ive, the former chief design officer of Apple, is taking on “deep creative and design responsibilities” across both OpenAI and io. In a statement, OpenAI mentioned that io will be integrated in-house, while Ive and his “creative collective” LoveFrom will remain independent.

The io team, which includes Apple alumni Scott Cannon, Tang Tan, and Evans Hankey, was founded a year ago by Ive. In a joint blog post, OpenAI CEO Sam Altman and Ive stated that the io team, focused on developing products that inspire, empower, and enable, will now merge with OpenAI to work closely with the research, engineering, and product teams in San Francisco.

OpenAI is paying $5 billion for the transaction, as it already owns 23% of io. Altman expressed his admiration for Ive, calling him “the greatest designer in the world” in a post on X (formerly Twitter).

This acquisition is OpenAI’s largest to date and comes weeks after the company agreed to buy AI-assisted coding tool Windsurf for $3 billion. Prior to that, OpenAI acquired the analytics database company Rockset in 2024 for an undisclosed sum.

Ive announced his departure from Apple in 2019 to start LoveFrom, a design consultancy. LoveFrom has worked on high-profile projects for clients such as Airbnb, Christie’s, and Ferrari, with clients reportedly paying up to $200 million annually. The firm’s website, however, does not provide much detail about its activities or mention io.

Ive is best known for his role in designing Apple’s most iconic products, including the iPod, iPhone, iPad, and MacBook Air. He also contributed to the design of Apple’s Cupertino headquarters, Apple Park, which opened in 2019.

This acquisition comes at a critical time for OpenAI, which was recently valued at $300 billion following a funding round led by SoftBank. The company is actively working to stay ahead in the generative AI race, where competitors like Google, Anthropic, and Elon Musk’s xAI are making significant investments and rolling out new products. Part of OpenAI’s strategy involves strengthening its hardware operations.

To further its hardware ambitions, OpenAI hired the former head of Meta’s Orion augmented reality glasses initiative in November to lead its robotics and consumer hardware efforts. The role will initially focus on OpenAI’s robotics work and partnerships to bring AI into the physical world and unlock its benefits for humanity.

Additionally, OpenAI invested in Physical Intelligence, a San Francisco-based robot startup, late last year. The company raised $400 million at a $2.4 billion valuation, with other investors including Amazon founder Jeff Bezos. Physical Intelligence focuses on developing large-scale AI models and algorithms to power robots, aiming to bring general-purpose AI into the physical world.

This acquisition of io by OpenAI is a strategic move that underscores the company’s commitment to innovation and its vision for the future of AI and hardware integration. 

Frequently Asked Questions (FAQS): 

Q: What is the significance of OpenAI acquiring Jony Ive's startup io?

A: The acquisition of io by OpenAI for $6.4 billion is significant because it marks OpenAI's major move into the hardware sector, leveraging Jony Ive's renowned design expertise to develop innovative AI products.

Q: Who is Jony Ive and what is his role in the acquisition?

A: Jony Ive is the former chief design officer of Apple and the founder of io, an AI devices startup. In the acquisition, he will take on deep creative and design responsibilities across OpenAI and io.

Q: What other significant acquisitions has OpenAI made recently?

A: OpenAI has recently agreed to buy AI-assisted coding tool Windsurf for $3 billion and acquired the analytics database company Rockset in 2024 for an undisclosed sum.

Q: What is the role of the former head of Meta’s Orion initiative at OpenAI?

A: The former head of Meta’s Orion augmented reality glasses initiative was hired by OpenAI to lead its robotics and consumer hardware efforts, focusing on bringing AI into the physical world.

Q: How does this acquisition fit into OpenAI's broader strategy?

A: This acquisition fits into OpenAI's strategy to stay ahead in the generative AI race by strengthening its hardware capabilities and integrating AI into physical products and robotics. 

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