OpenAI Acquires Apple Veteran Jony Ive’s AI Startup In $6.5 Billion Deal, Pushes Into Hardware

In a nearly $6.5 billion all-stock purchase—the largest in OpenAI history—the ChatGPT maker will purchase the AI device business that was co-founded by Apple veteran Jony Ive. 

Ive’s AI startup, called “io”—which has so far remained quite secretive­—will be acquired by OpenAI, and Ive and other former Apple designers who created iconic products like the iPhone will also be reportedly retained. 

With this partnership with the renowned tech designer, OpenAI aims to expand into the hardware market with a specialised division for creating AI-powered products. About 55 engineers and developers will join OpenAI as a result of the acquisition, and the company expects to release its first hardware products in 2026.

A joint letter on the company’s website by “Sam & Jony” (OpenAI’s Sam Altman and Jony Ive) mentioned that “Jony Ive and the creative collective LoveFrom quietly began collaborating with Sam Altman and the team at OpenAI” two years ago. A year back, Ive founded io with Scott Cannon, Evans Hankey, and Tang Tan.

“The io team, focused on developing products that inspire, empower and enable, will now merge with OpenAI to work more intimately with the research, engineering and product teams in San Francisco,” the post read. Ive and LoveFrom will take on deep design and creative duties across both OpenAI and io as a result of the merger.

Known for his contributions to the famous designs of the iPhone, iMac, and iPad, Ive worked at Apple for more than 20 years. Prior to departing the company in 2019 to launch his own design studio, Ive served as Apple’s chief design officer.

In addition to creating Apple’s iconic minimalist style, Ive is widely acknowledged for having contributed to the company’s turnaround in the late 1990s. Notably, in a press announcement following his resignation, Apple CEO Tim Cook had said that Ive had made an immeasurable contribution to the company’s comeback.