OpenAI is acquiring Jony Ive’s startup, io Products, in a $6.5 billion all-stock deal, bringing the famed ex-Apple designer on board as creative head. Ive’s firm, LoveFrom, has been collaborating with OpenAI for two years to develop new generative AI hardware.
The goal is to combine Ive’s design legacy, best known for the iPhone with OpenAI’s AI technology to create a breakthrough device. CEO Sam Altman hinted at a working prototype, calling it “the coolest piece of technology the world will have ever seen.”
OpenAI previously held a 23% stake in io. The move signals OpenAI’s ambition to own its hardware platform, rather than relying on Apple or Google ecosystems. Apple shares dropped over 2% following the news.
Startups like Humane AI and Rabbit have attempted similar devices, with limited success. Humane’s AI Pin flopped and was later acquired by HP. Rabbit’s r1 device sold well but still lags behind smartphones in functionality.