OpenAI Makes Bold Hardware Move with $6.5B Acquisition of Jony Ive's AI Startup

 

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In a major strategic shift, OpenAI is diving into the world of hardware by acquiring io, a stealthy AI startup co-founded by iconic former Apple designer Jony Ive. The deal, valued at nearly $6.5 billion in stock, signals OpenAI's commitment to bringing AI innovations beyond software and into tangible products.

OpenAI CEO Sam Altman and Jony Ive shared the news in a video on X, revealing they’ve been working behind the scenes for nearly two years on the vision for AI-first consumer devices. Ive’s team at LoveFrom, known for crafting some of Apple’s most beloved designs, will stay independent but play a key creative role within the OpenAI ecosystem.

The startup io, which has flown under the radar until now, was founded just a year ago with the goal of creating AI-native devices that empower and inspire users. OpenAI says the io team will now work closely with its engineers and researchers in San Francisco to develop hardware that makes artificial intelligence more natural, intuitive, and widely accessible.

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“I want this to be democratized. I want everyone to have it,” Altman said, emphasizing the company's mission to create devices that help people build and create in ways never before possible. He described the future of AI hardware as unlocking an “embarrassment of riches” for humanity.

The announcement interestingly coincided with Google’s I/O developer conference, underscoring the growing industry race to bring AI to physical products. While competitors have launched AI-powered smartphones and computers, the market for AI-specific devices remains wide open — and risky, as seen with the lukewarm reception of products like the Humane AI Pin and Rabbit R1.

Although no product details have been confirmed, the team hinted that their first device likely won’t launch until 2026. Altman briefly mentioned an early prototype, calling it “the coolest piece of technology that the world will have ever seen.” Reports from the Wall Street Journal suggest camera-based devices and smart headphones are among the ideas being explored.

This acquisition not only marks OpenAI’s largest to date but also potentially reshapes its identity — from a software powerhouse to a player in consumer tech, challenging giants like Apple and Google in the hardware space.