What Happened?
OpenAI has announced a $6.4 billion all-stock deal to acquire io, an AI hardware startup founded by former Apple Chief Designer Jony Ive.
The products created by Ive helped Apple transition from the brink of bankruptcy to the world’s highest-valued company. After leaving Apple, he established io, which focuses on developing AI hardware products.
According to OpenAI, the first batch of new devices designed by the io team in collaboration with LoveFrom is expected to be released in 2026. Reports suggest that these prototype devices may be wearable technology.
OpenAI Acquires AI Hardware Startup io
Recently, OpenAI announced the official acquisition of the AI hardware startup io, founded by legendary Apple designer Jony Ive, in an all-stock transaction valued at $6.4 billion. While serving as Apple’s Chief Designer, Ive created iconic products such as the iMac, iPod, iPhone, and Apple Watch, helping Apple grow from the brink of bankruptcy to the world’s highest-valued company. After leaving Apple in 2019, he established the independent design studio LoveFrom, attracting well-known clients such as Airbnb and Moncler.
One year ago, Ive, along with several former Apple colleagues including Scott Cannon, Evans Hankey, and Tang Tan, co-founded the startup io in San Francisco, focusing on developing wearable hardware products integrated with AI. According to foreign media reports, io has maintained a low-profile collaboration with OpenAI, and now that the two have officially merged, the io team, consisting of 55 employees including hardware and software engineers, will be fully integrated into OpenAI’s operational system.
Entering the AI Hardware Domain to Create Wearable Devices
This acquisition signifies OpenAI’s formal entry into the AI hardware field. OpenAI CEO Sam Altman stated in a video that the products we currently use are essentially legacies from decades ago. Today, we should reimagine how people interact with technology.
Altman shared his experience of testing an io prototype, candidly stating, “This is the coolest tech product I’ve ever seen.” Reports indicate that these prototype devices may be wearable, offering the potential to move beyond the traditional frameworks of smartphones and keyboard computers, creating entirely new modes of interaction. Altman further emphasized that OpenAI’s goal is to develop a series of devices that fundamentally reshape people’s perceptions of computers.
In contrast, Ive’s former employer, Apple, has been relatively conservative in its AI strategy in recent years. Even with the introduction of the “Apple Intelligence” feature, there have yet to be clear consumer application outcomes. According to foreign media reports, following the announcement of OpenAI’s acquisition of io, Apple’s stock price fell by more than 2% at one point.
Ive stated in a statement that everything he has experienced over the past 30 years seems to have been preparing him for this moment. He feels both nervous and excited about the responsibility for the future, while also being grateful to be part of it.
According to OpenAI, the first batch of new devices designed by the io team in collaboration with LoveFrom is expected to be released in 2026. This collaboration between Ive and Altman is not just a business acquisition; it marks the beginning of bringing AI consumer hardware products into everyday life.
Source: BBC, Decrypt