OpenAI is officially acquiring io, the secretive hardware startup co-founded by former Apple design legend Jony Ive and OpenAI CEO Sam Altman. The all-equity deal values the company at a staggering $6.5 billion, according to The Wall Street Journal.
As part of the acquisition, Jony Ive and his design firm, LoveFrom, will take the lead on OpenAI’s design and creative direction. Altman, clearly excited, posted on X (formerly Twitter):
“Thrilled to be partnering with Jony, [in my opinion] the greatest designer in the world. Excited to try to create a new generation of AI-powered computers.”
This marks a significant moment for OpenAI, bringing one of the most influential designers in tech history — the mind behind the iPhone, iPod, iPad, and Apple Watch — into the fold as generative AI reshapes the tech landscape.
With this move, OpenAI is gearing up to make a serious push into consumer hardware — possibly putting pressure on Apple, which has been seen as lagging behind in the AI race. Apple’s stock even dipped 2% following the announcement.
The startup io brings a team of around 55 engineers, scientists, and designers, many of them former Apple veterans, including Scott Cannon, Evans Hankey, and Tang Tan — all known for their work on Apple’s most iconic devices. This team will now be joining OpenAI, though LoveFrom will continue to operate independently.
According to reports from Bloomberg, Altman and Ive have been quietly working on a new kind of AI device aimed at moving consumers “beyond screens.” The first products from this collaboration are expected to launch in 2026.
This acquisition isn’t entirely out of the blue. OpenAI already held a 23% stake in io from a previous deal, meaning it will now pay $5 billion to fully acquire the company — its largest acquisition to date.
In a video released by OpenAI, Altman shared the vision behind io: to build a family of AI-powered devices that empower people to create “all sorts of wonderful things.” Ive added that his decades of design experience have led him to this exact moment, describing their first device as one that has “completely captured” his imagination.
The AI hardware market is still in its early stages. Altman was previously an investor in Humane, another AI hardware venture started by former Apple employees, which created an AI-powered wearable pin. That project, however, struggled and was ultimately sold to HP.
Other AI device formats are gaining traction — like Meta’s AI smart glasses, developed with eyewear giant EssilorLuxottica, which are seeing strong adoption. Google also announced its own AI glasses this week, developed with Samsung, Warby Parker, and others.
For now, it’s still a mystery what OpenAI’s new devices will look like. But one thing is clear: Altman believes the future of interacting with AI should be more seamless and personal — not just another app on a smartphone.
