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“OpenAI Goes All-In With $6.5 Billion”: Former Apple Legends Join Forces to Build Mind-Blowing Hardware Revolution

OpenAI's groundbreaking acquisition of Jony Ive's AI hardware startup, io, for $6.5 billion marks a bold leap into the hardware arena, promising to revolutionize the integration of artificial intelligence into everyday life.

Avi Cohen,Avi Cohen,May 25, 2025 at 6:51 AM5
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Illustration of OpenAI's acquisition of Jony Ive's AI hardware startup io. Image generated by AI.
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IN A NUTSHELL
  • 🚀 OpenAI has acquired the AI hardware startup io, founded by renowned designer Jony Ive, in a landmark $6.5 billion deal.
  • 💡 The acquisition integrates io’s 55-member team, including former Apple engineers, into OpenAI to foster AI-powered consumer hardware innovation.
  • 🎨 Jony Ive and his design firm LoveFrom will lead creative efforts, maintaining their independence while collaborating closely with OpenAI.
  • 🔍 The partnership aims to move beyond traditional screens, creating new interfaces for more natural and immersive AI interactions.

In a bold move that is reshaping the landscape of artificial intelligence and hardware design, OpenAI has embarked on an ambitious journey by acquiring the AI hardware startup io, helmed by the legendary designer Jony Ive. This acquisition, valued at a staggering $6.5 billion, marks a significant milestone for OpenAI as it ventures into hardware development, aiming to seamlessly integrate AI into everyday life. As we delve deeper into this groundbreaking collaboration, let us explore the implications and potential of this union between OpenAI and some of the brightest minds in technology and design.

New Hardware Frontier for OpenAI

The strategic acquisition of io by OpenAI is a testament to the company’s growing ambitions in the realm of consumer hardware. By bringing io’s 55-member team, which includes seasoned professionals like Scott Cannon, Tang Tan, and Evans Hankey, into its fold, OpenAI is poised to take a significant leap forward. These individuals, who have previously worked with Jony Ive on some of Apple’s most iconic products, are set to play a crucial role in crafting the future of AI-powered devices.

OpenAI’s decision to pay $5 billion in all-equity, while already holding a 23% stake in io, underscores its commitment to this new venture. The merger aims to foster closer collaboration between OpenAI’s research, engineering, and product teams in San Francisco with the innovative minds from io. This alliance is expected to yield the first AI-powered device from their collaboration as early as 2026, paving the way for new consumer experiences.

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Ive and LoveFrom to Lead Creative Vision

Jony Ive, alongside his renowned design firm LoveFrom, is set to lead the creative charge for both OpenAI and io. Although io is now part of OpenAI, LoveFrom will maintain its independence, allowing Ive to bring his distinct creative vision to the forefront of this partnership. OpenAI CEO Sam Altman has expressed his excitement about working with Ive, whom he regards as the greatest designer in the world.

Ive, reflecting on his journey, remarked that his experiences over the past three decades have culminated in this significant collaboration. He is particularly captivated by the potential of the first device being developed under this partnership. With Ive at the helm, OpenAI is well-positioned to infuse its AI-driven products with pioneering design and functionality, setting new standards in the tech industry.

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Beyond Screens: Rethinking the Interface

For the past two years, Jony Ive and Sam Altman have been quietly working on prototypes that aim to revolutionize the way humans interact with machines. Their vision is to move users beyond the constraints of traditional screens, creating a more intuitive and immersive interface. This ambition stems from a desire to develop AI tools that feel natural and seamlessly integrated into daily life.

According to reports, the team’s work is inspired by the goal of building AI-driven interactions that transcend the limitations of phones and laptops. In a video shared by OpenAI, Sam Altman emphasized the need to create a new generation of AI-powered computers. This vision aligns with the company’s mission to redefine the interface between humans and technology, opening up a world of possibilities for future innovations.

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Racing Ahead in AI’s Physical Future

OpenAI’s acquisition of io and its focus on consumer hardware come at a time when the company is actively pursuing advancements in physical AI experiences. With the recent hiring of Caitlin “CK” Kalinowski, formerly of Meta’s Orion AR project, OpenAI is poised to strengthen its capabilities in robotics and consumer hardware. The company’s investment in Physical Intelligence, a robotics startup, further highlights its commitment to exploring large-scale AI models.

As OpenAI continues to expand its horizons, it faces stiff competition from tech giants like Google, Anthropic, and xAI. However, with a valuation of $300 billion and the addition of Jony Ive’s expertise, OpenAI is well-equipped to carve out a niche in the generative AI space. The news of Ive’s return to product development has already impacted Apple’s stock, indicating the potential pressure this collaboration could exert on the tech industry.

As OpenAI and Jony Ive embark on this remarkable journey together, the world watches with bated breath to see how this collaboration will unfold. The potential for innovation is immense, and the impact on AI and hardware design could be transformative. With technology advancing at an unprecedented pace, what groundbreaking advancements can we expect from this partnership in the coming years?

Our author used artificial intelligence to enhance this article.

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View 5 Comments
5 Comments
  1. peter8 on May 25, 2025 6:53 am

    Wow, $6.5 billion is a lot! Do you think this investment will pay off for OpenAI? 🤔

    Reply
  2. Oliverfairytale on May 25, 2025 7:45 am

    Jony Ive back in action! Can’t wait to see what magic he creates with AI!

    Reply
  3. kamal on May 25, 2025 8:35 am

    Is OpenAI trying to become the new Apple with this move? 🍏

    Reply
  4. Mary5 on May 25, 2025 9:28 am

    How will this acquisition affect the current projects at OpenAI?

    Reply
  5. Valerie_waves on May 25, 2025 11:09 am

    Hopefully, this partnership will lead to some amazing hardware innovations.

    Reply
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Illustration of artificial intelligence organizing information like human cognition. Image generated by AI.
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