Jony Ive Joins OpenAI: Design Lead After $6.5B Acquisition

OpenAI to Acquire Device Startup io for $6.5 Billion

OpenAI is set to acquire io, a device startup co-founded by CEO Sam Altman and renowned Apple designer Jony Ive. This acquisition, structured as an all-equity deal, values io at $6.5 billion, as reported by The Wall Street Journal.

Jony Ive to Lead Design at OpenAI

A key component of this unusual agreement is that Jony Ive and his design firm, LoveFrom, will assume leadership of creative and design initiatives within OpenAI. Altman expressed his enthusiasm on X, stating he is “thrilled to be partnering with jony, [in my opinion] the greatest designer in the world.”

Expanding into Consumer Hardware

This collaboration positions a former head of Apple design – celebrated for iconic products like the iPhone, iPod, and iPad – at the forefront of generative AI technology. OpenAI has significantly expanded its consumer-facing operations since the 2022 launch of ChatGPT.

The company recently appointed Fidji Simo, a former Meta executive and Instacart CEO, to oversee its consumer applications.

Potential Competition with Apple

Ive’s involvement could enable OpenAI to directly challenge Apple in the consumer hardware market, potentially increasing pressure on the iPhone manufacturer. Apple has faced challenges in developing AI features that match the advancements from OpenAI and Google.

Following the announcement of the OpenAI and Ive partnership, Apple’s stock experienced a 2% decline.

io Team to Join OpenAI

io comprises approximately 55 engineers, scientists, researchers, physicists, and product development specialists, all of whom will transition to OpenAI. A significant portion of io’s team consists of former Apple designers, including Scott Cannon, Evans Hankey, and Tang Tan, who were instrumental in creating the company’s most recognizable products.

LoveFrom to Remain Independent

Jony Ive will maintain control of his design firm, LoveFrom, which will continue its operations independently.

Focus on AI-Powered Devices

Under OpenAI’s ownership, io will concentrate on developing AI-powered consumer devices and related projects. Altman and Ive have reportedly been working on a device designed to move users “beyond screens.”

Bloomberg indicates that the initial devices from Ive and Altman are anticipated to be unveiled in 2026. The Wall Street Journal reports that Ive will have a broad influence, contributing to future iterations of ChatGPT and other initiatives.

Acquisition Details

OpenAI previously held a 23% stake in io through an agreement established last year, according to The New York Times. This means the full acquisition of io will require a payment of $5 billion, representing OpenAI’s largest acquisition to date.

The OpenAI Startup Fund also made a separate investment in io last year.

Vision for AI Devices

In a video released by OpenAI, Altman articulated io’s mission to create a range of AI devices that empower users to generate “all sorts of wonderful things.” Ive expressed his belief that his accumulated experience “over the last 30 years has led me to this place and this moment.”

He also stated that the first AI device io is developing has “completely captured” his imagination.

The Evolving AI Device Landscape

The market for AI devices is still nascent. Altman was an early investor in Humane, another AI hardware company founded by former Apple employees, which produced an AI-powered “pin.” However, Humane was ultimately sold to HP and its devices discontinued after facing difficulties.

Other AI device form factors, such as Meta’s AI-powered smart glasses developed in collaboration with EssilorLuxottica, have demonstrated greater success in terms of sales and consumer adoption.

Google recently unveiled its own AI smart glasses, developed with partners including Samsung and Warby Parker.

Future of OpenAI’s Devices

The precise form factor of OpenAI’s devices remains uncertain. Altman noted that accessing ChatGPT through traditional devices like laptops or smartphones is cumbersome.

He suggested a preference for a device that is more seamlessly integrated into daily life.

Initial Reports of the Acquisition

The Information initially reported on OpenAI’s discussions to acquire io in March. At that time, the companies were reportedly exploring the development of a device inspired by the technology depicted in the film “Her.”