OpenAI Acquires Ive's Hardware Startup

OpenAI has finalised a $6.5 billion all-stock deal to acquire an AI device startup co-founded by Jony Ive, Apple's former design chief. This acquisition marks OpenAI's entry into the hardware market, with Ive's team set to design and build AI interfaces. The move aims to create AI-powered devices that move beyond traditional screens, potentially including voice-based interaction and advanced environmental awareness.

The startup, named io, was formed a year ago by Ive and former Apple designers. The acquisition will see Ive's design firm, LoveFrom, take on design responsibilities across OpenAI and io. While Ive will not take a direct role at OpenAI, his team will form a new hardware division. The first products from this collaboration are expected in 2026 and are intended to offer a new way for users to interact with AI.

This acquisition positions OpenAI to compete with tech giants like Apple and Google in the AI hardware space. By integrating AI expertise with hardware design, OpenAI aims to create a new category of devices optimised for AI interaction. The move reflects a strategic shift towards consumer-oriented products, potentially opening new markets and revenue streams for OpenAI.