OpenAI Acquires Jony Ive's io Products for $6.5 Billion, First Device to be Context-Aware

OpenAI has finalized its $6.5 billion acquisition of Jony Ive's AI hardware startup io Products, bringing 55 engineers and designers from Apple and LoveFrom into the fold. The first device will not be a wearable or in-ear device, but rather something that sits in your pocket or on your desk. The rumored pocket-sized gadget will be context-aware, offering screen-free interactions by understanding the user's environment and behavior. OpenAI CEO Sam Altman and Ive unveiled plans to develop new AI hardware that moves beyond legacy interfaces like smartphones and laptops.

OpenAI has finalized its acquisition of Jony Ive's AI hardware startup io Products, marking a significant move in the AI and hardware landscape. The deal, valued at $6.5 billion, brings 55 engineers and designers from Apple and LoveFrom into the OpenAI fold [1].

Jony Ive, the renowned former Apple designer, and his LoveFrom design firm will remain independent but have assumed deep design and creative responsibilities at OpenAI. Ive and his team will be instrumental in developing a new family of AI devices, moving beyond traditional interfaces like smartphones and laptops [2].

The first device from this partnership will not be a wearable or in-ear device but rather a pocket-sized gadget that sits on a desk or in a pocket alongside a Mac and an iPhone. The device is rumored to be context-aware, offering screen-free interactions by understanding the user's environment and behavior [3].

OpenAI CEO Sam Altman and Ive have outlined plans to develop AI hardware that empowers users in ways not previously possible. The acquisition was first announced in May, with a video featuring Ive and Altman discussing their vision for the future [1].

While specifics about the first device are still unavailable, rumors suggest it could be a screenless smartphone. Previous attempts at screen-free voice-based AI devices have not been widely successful, but the partnership between Ive and OpenAI could bring innovative solutions to the market [3].

The acquisition underscores OpenAI's commitment to advancing AI technology and creating new, user-centric products. As the AI hardware market continues to evolve, this acquisition positions OpenAI as a key player in shaping the future of AI devices.

References:
[1] https://www.macrumors.com/2025/07/09/openai-jony-ive-io-acquisition-complete/
[2] https://www.theverge.com/news/703114/openai-io-jony-ive-sam-altman-ai-hardware
[3] https://www.mactrast.com/2025/07/openais-acquisition-of-jony-ives-io-ai-hardware-company-is-final/