OpenAI Acquires Jony Ive’s io for $6.4 Billion to Revolutionize Hardware

Coin WorldWednesday, May 21, 2025 2:55 pm ET
1min read

OpenAI has acquired Jony Ive’s AI hardware startup io in a $6.4 billion all-equity deal. This acquisition aims to integrate io’s hardware expertise with OpenAI’s research, engineering, and product teams in San Francisco. Jony Ive, renowned for his role in designing iconic Apple products, including the original iMac, is set to bring his design prowess to OpenAI. The iMac, launched by Steve Jobs, was a pivotal product that helped Apple’s turnaround, ultimately making it one of the most valuable companies in the world.

Apple stock initially dipped nearly 2% following the news but later recovered. The company has faced challenges in keeping up with the rapid advancements in AI, particularly with its “Apple Intelligence” features, which have yet to deliver on their promises. The merger between OpenAI and io is poised to introduce a variety of new wearable devices, potentially leapfrogging traditional cellphones and keyboard-based computers.

OpenAI CEO Sam Altman, who has been using a prototype of an io device, described it as “the coolest piece of technology the world has ever seen.” Altman highlighted the outdated nature of current devices, suggesting that there is a need for innovative products that can better deliver and connect users to advanced technology. Ive’s company, io, was established with former Apple colleagues Scott Cannon, Evans Hankey, and Tang Tan, and includes a team of approximately 55 hardware engineers, software developers, and manufacturing experts.

Following the acquisition, Ive’s separate design firm, LoveFrom, will take on design and creative responsibilities across OpenAI’s product lineup. Ive expressed his excitement and anxiety about the substantial work ahead, stating that his experiences over the past 30 years have led him to this moment. The first products resulting from this collaboration are expected to launch in 2026, marking a significant step in OpenAI’s expansion into consumer hardware.