OpenAI is going all-in on hardware, dropping a cool $6.5 billion to acquire Jony Ive‘s io Products startup. The former Apple design guru, known for creating the iPhone’s sleek look, will help OpenAI reimagine how humans interact with AI beyond typical screens. The deal includes $5 billion in OpenAI stock and brings 50 employees to San Francisco. With products expected in 2026, tech enthusiasts are buzzing about what revolutionary gadgets this power duo might cook up.
OpenAI just dropped a bombshell in the tech world, scooping up Jony Ive‘s startup io Products for a whopping $6.5 billion. The deal, which includes $5 billion in OpenAI stock, brings the design genius behind the iPhone and iMac into the AI hardware game. Not too shabby for a company that’s barely a year old.
The acquisition will fold io’s 50-something employees into OpenAI’s San Francisco operation, creating a spanking new hardware division. Peter Welinder, an AI hotshot, will lead the charge. Talk about a power move. Ive’s independent design firm, LoveFrom, will keep doing its own thing but stick around as an OpenAI client. Because apparently, you can have your cake and eat it too. Both leaders have emphasized their deep connection to the Bay Area, making the San Francisco-based collaboration a natural fit.
This isn’t some random hookup – OpenAI and Ive have been secretly working together for about two years, even before io Products was a thing. The goal? Pretty ambitious: they want to completely reinvent how we interact with AI. We’re talking about moving beyond boring old smartphones into something entirely new. Screens? That’s so 2023.
Sam Altman, OpenAI’s CEO, is practically giddy about getting Ive on board. And why wouldn’t he be? The man who made Apple’s products look like pieces of art is now tasked with creating the next generation of AI gadgets. The first products are expected to hit the market in 2026, which feels like forever in tech years. Having worked closely with Jobs on revolutionary Apple designs, Ive brings unparalleled experience to the table.
The price tag might seem steep – because it is. But when you’re valued at $300 billion (OpenAI’s projected worth by 2025), dropping $6.5 billion on a design startup doesn’t seem so crazy. The deal is expected to close in summer 2025, giving everyone plenty of time to speculate about what these mysterious new AI devices might look like.
One thing’s for sure: with Ive’s track record and OpenAI’s tech prowess, whatever they’re cooking up is bound to turn heads. The future of AI hardware just got a whole lot more interesting.
