OpenAI Moves Into Hardware: Acquires Jony Ive’s io in Bold $6.5B Push

OpenAI’s Monumental Leap: Buying io for $6.5 Billion

OpenAI just upped the stakes in the tech race, snatching up io—the AI hardware venture built by the legendary Jony Ive—for a cool $6.5 billion. If you thought OpenAI was content with just software, guess again. This buyout isn’t just the company’s biggest—it signals something huge: OpenAI is gunning for the consumer electronics crown, and Apple should be watching its back.

The io startup might seem mysterious—until now, it’s kept things under wraps. But behind the smoke, the team, built by Jony Ive, ex-Apple design chief Evans Hankey, and engineer Tang Tan, was locked in on one thing: redefining how humans use and connect with AI. You’re not just talking about cramming a chatbot in a phone. These guys were envisioning hardware that could make AI a natural part of everyday life.

Jony Ive at the Helm—With LoveFrom and OpenAI Joining Forces

Now that io is part of OpenAI, their 50-person squad of engineers, designers, and researchers are headed to San Francisco to join the broader OpenAI gang. But it gets even more interesting. Jony Ive isn’t becoming just another OpenAI employee. He’s leading design through his own creative agency, LoveFrom. This partnership keeps LoveFrom independent, but OpenAI’s now a major client—and LoveFrom will get a stake in the company, aligning incentives for a long run together.

You know Jony Ive as the mind behind the iPhone, iPod, and Apple Watch—basically the DNA of modern tech design. That same vision will now guide OpenAI’s new hardware effort. And you’ve got CEO Sam Altman hyped about this arrangement, publicly saying their next step is building a brand new class of AI-fueled computers. This isn’t just about sprucing up old gadgets. They want to rethink how hardware and AI flow together from scratch.

But there's more than just talk. The startup io already had heavyweight backers on board, like Laurene Powell Jobs’ Emerson Collective, Thrive Capital, and Sutter Hill Ventures. With so much investor confidence, you can bet the expectations for this merger are through the roof. The goal is bold: roll out devices that don’t need traditional screens, like AI-powered headphones or all-new types of cameras. If reports from The Wall Street Journal hold up, these products could land in your hands sooner than you think.

The timing feels perfect. OpenAI recently brought on former Meta exec Fidji Simo—another clear sign they’re bolstering their consumer game. The impact was immediate: Apple’s stock fell by 2% right after the news hit, showing the markets know this is no ordinary deal. OpenAI has its sights set on “inspiring, empowering, and enabling” users with hardware that’s equally smart and stylish, all while going toe-to-toe with Apple’s iconic approach.

So here’s the new reality: OpenAI isn’t just playing in the language model sandbox anymore. By acquiring io and handing the design reins to Jony Ive, they’re betting big on hardware that changes how people and AI work together. And in this next act, the lines between software and product are about to blur like never before.

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