OpenAI acquires Jony Ive's startup for $6.5 billion
- OpenAI has acquired Jony Ive's startup io for approximately $6.5 billion.
- The acquisition will allow Ive's design firm LoveFrom to act as the primary design partner for OpenAI while continuing its independent operation.
- The first AI-powered device from this collaboration is expected to be released in 2026.
In May 2025, Jony Ive, the renowned designer behind many of Apple's iconic products, joined OpenAI as they acquired his AI hardware startup, io. The all-stock deal, valued at approximately $6.5 billion, adds significant value to Ive, who co-founded io in September 2023 after leaving Apple. The acquisition represents a strategic partnership between Ive and Sam Altman, OpenAI's CEO, who expressed excitement about creating new AI-powered devices that will operate in a way not seen before in the tech industry. Both Ive and Altman have teased potential AI companions, devices intended to engage users in unique interactions without screens. While the merger will see about 55 engineers and developers from io join OpenAI, Jony Ive will continue to run his design firm, LoveFrom, which has now become a primary design partner for OpenAI projects. This collaboration permits LoveFrom to focus solely on OpenAI without taking on new clients, while it will also oversee design aspects for OpenAI's forthcoming products, combining aesthetic sensibility with advanced AI technology. Their first device is anticipated to debut in 2026 and aims to redefine user connectivity to technology. The move is a pivotal one for both parties, as OpenAI seeks to expand its footprint beyond software and into the hardware realm, following earlier successes with its AI chatbot. Going forward, Apple faces increased competition in the AI landscape, as OpenAI's collaboration with seasoned Apple designer could lead to innovation that disrupts the market. As of May 2025, Apple has been struggling with dwindling share prices and a delay in the launch of its own AI innovations, allowing OpenAI and Jony Ive to position themselves advantageously in a rapidly evolving technological space. Tom Cook, Apple's CEO, has made public comments about the importance of Jony Ive's contributions during his tenure at Apple, emphasizing the impact of his designs during the company's revival in the 1990s. As the tech industry anticipates the launch of OpenAI's new devices, the collaboration with industry legends suggests a significant leap forward in artificial intelligence and its intersections with everyday technology.