OpenAI is acquiring io, the device startup that CEO Sam Altman and famed Apple designer Jony Ive have quietly been working on for two years, in an all-equity deal that values that startup at $6.5 billion, according to The Wall Street Journal. As part of the unusual deal announced Wednesday, Ive and his design firm, LoveFrom, will now lead creative and design work at OpenAI.
“thrilled to be partnering with jony, [in my opinion] the greatest designer in the world,” said Altman in a post on X Wednesday. “excited to try to create a new generation of AI-powered computers.”
OpenAI and Ive’s collaboration puts one of Apple’s former design heads — famous for crafting many iPhones, iPods, iPads, and Apple Watches — at the forefront of the newest technology wave, generative AI. Since the launch of ChatGPT in 2022, OpenAI has amped up its consumer business significantly. Earlier this month, the company appointed former Meta executive and Instacart CEO Fidji Simo to lead its consumer applications.
Ive could help OpenAI directly compete with Apple in the consumer hardware space, putting even more pressure on the iPhone maker. In recent years, Apple has struggled to develop AI features that keep up with the latest technology from OpenAI and Google. Apple’s stock fell 2% on Wednesday after the OpenAI and Ive collaboration was announced.
Io has a staff of around 55 engineers, scientists, researchers, physicists, and product development specialists, per The Wall Street Journal, all of whom will join OpenAI. Many of io’s employees are former Apple designers — including Scott Cannon, Evans Hankey, and Tang Tan — who helped build the firm’s most iconic products.
Ive is retaining control of his design firm, LoveFrom, which will continue to operate independently.
Io, under OpenAI, will develop AI-powered consumer devices and other projects. Altman and Ive have reportedly been working on a device that moves consumers “beyond screens.” Bloomberg reports that Ive and Altman’s first devices are slated to debut in 2026. The Wall Street Journal reports that Ive will have an expansive role, giving input into future versions of ChatGPT and more.
OpenAI already had a 23% stake in io as part of an agreement between the companies last year, according to The New York Times. That means OpenAI will pay $5 billion to fully acquire io, marking the ChatGPT maker’s largest acquisition ever. Reportedly, the OpenAI Startup Fund made a separate investment in io last year.
In a video posted by OpenAI, Altman said the mission of io is to create a family of AI devices that will let people use AI to produce “all sorts of wonderful things.” Ive said he’s convinced that everything he’s learned “over the last 30 years has led me to this place and this moment.” The first AI device io is working on has “completely captured” Ive’s imagination, he said.
The world of AI devices is still in its infancy. Altman was an early investor in Humane, another AI hardware company founded by former Apple employees, which made an AI-powered “pin.” After a series of stumbles, Humane was sold to HP and its devices were sunsetted.
Meanwhile, other form factors for AI devices have shown more promise. Meta’s AI-powered smart glasses, which it’s developing with the eyewear giant EssilorLuxottica, have achieved strong sales and adoption among consumers. This week, Google unveiled its version of AI smart glasses that it’s developing with Samsung, Warby Parker, and other partners.
Ultimately, it’s unclear what shape OpenAI’s devices will take. Later in the video, Altman noted how using a laptop or smartphone to access ChatGPT was too cumbersome. Instead, the OpenAI CEO suggested he’d rather use a device more integrated into his everyday life.
The Information first reported on OpenAI’s discussions to acquire io in March. At the time, the two companies were said to be discussing building a device that would bring a version of the technology from the movie “Her” to life.