By Summary
- OpenAI acquires Jony Ive’s startup, io, for $6.5 billion; Ive to lead design of future AI products.
- Ive and Sam Altman plan an innovative AI device launching in 2026, designed as a smart companion.
- About 55 io employees will join OpenAI, while Ive’s LoveFrom studio remains independent.
- Apple struggles with delayed AI rollout and lawsuits, losing 17% in share value in 2025.
San Francisco – In a transformative move for the AI industry, OpenAI, under the leadership of CEO Sam Altman, has acquired the hardware startup io, founded by Apple’s legendary former design chief, Jony Ive, in a deal valued at $6.5 billion.
Announced on Wednesday, the acquisition positions Ive to lead design efforts across OpenAI’s software and hardware initiatives, with plans to unveil a revolutionary AI device by 2026 that could challenge Apple’s dominance in consumer technology.
The partnership between Altman and Ive began quietly in 2023, when Ive’s design firm, LoveFrom, started collaborating with OpenAI.
Early discussions, reported by the Wall Street Journal, explored concepts like headphones and camera-equipped devices. These talks evolved into ambitious plans for an “iPhone of artificial intelligence,” as reported by the Financial Times, with initial backing from SoftBank in a potential $1 billion deal.
The resulting vision is for AI “companions” – compact devices that can sit in a pocket or on a desk, deeply aware of a user’s surroundings and lifestyle, offering a “more natural and intuitive” interaction with AI, distinct from existing smartphones.
Ive, who will not formally join OpenAI’s staff, will oversee design through LoveFrom, which remains an independent entity. However, approximately 55 hardware engineers, software developers, and manufacturing experts from io will transition to OpenAI, bolstering its capacity to develop both hardware and software.
Altman, in a statement to OpenAI employees obtained by the Wall Street Journal, described these devices as a “third device” alongside products like the iPhone or MacBook Pro, emphasizing their unique role in the tech ecosystem. He also expressed excitement on X about creating “a new generation of AI-powered computers,” hinting at broader ambitions for Ive’s design influence.
Ive, renowned for designing iconic Apple products like the iMac, iPod, iPhone, iPad, and Apple Watch, as well as Apple’s futuristic Apple Park campus, has been vocal about the shortcomings of early AI devices. In an interview with Bloomberg, he criticized products like the Humane Ai Pin as “very poor,” underscoring his intent to redefine AI hardware with Altman.
“This won’t make the smartphone go away,” Altman told Bloomberg, “but it’s a totally new kind of thing.” The duo’s first device, expected to debut in 2026, aims to introduce innovative ways for consumers to engage with AI, potentially setting a new standard in the industry.
The acquisition comes at a challenging time for Apple, Ive’s former employer, where he served from 1992 until 2019. Apple’s shares have fallen over 17% in 2025, reflecting investor concerns about its delayed AI strategy.
The company’s much-touted “Apple Intelligence” features, announced with the iPhone 16 in 2024, have been postponed to 2026 after issues with inaccurate AI-generated news summaries led to their disablement.
Apple also faces a lawsuit filed in March 2025 in the U.S. District Court in San Jose, with consumers alleging false advertising over unmet expectations for AI capabilities at the iPhone 16’s launch. Apple did not respond to requests for comment.
OpenAI’s acquisition of io is part of a broader push into physical devices, following its 2022 ChatGPT success. The company previously acquired a 23% stake in io in 2023 and has made strategic hires, including the former head of Meta’s augmented reality glasses project in November 2024.
OpenAI also invested in the robot startup Physical Intelligence that same month, signaling a commitment to expanding its hardware portfolio. The io acquisition, first reported in March 2025, aligns with OpenAI’s vision of creating devices inspired by the AI companion in the 2013 film “Her”, which fostered intimate, context-aware interactions.
Jony Ive’s storied career at Apple, where he played a pivotal role in the company’s 1990s revival, makes his move to OpenAI a significant shift in the tech landscape. Apple CEO Tim Cook, upon Ive’s 2019 departure to found LoveFrom, praised his “profound” impact.
Now, with Ive’s design expertise paired with OpenAI’s AI prowess, the tech world is watching closely for a product that could redefine how we interact with artificial intelligence.
As Altman and Ive prepare to launch their first device in 2026, the question looms: will this be the innovation that reshapes the industry, or a bold gamble in an already crowded market?
