OpenAI ventures into hardware with $6.4B deal for legendary designer Jony Ive’s startup io

OpenAI announced connected May 21 that it volition get Jony Ive’s artificial quality hardware startup io successful an all-equity transaction valued astatine astir $6.4 billion, according to a study by CNBC.

The acquisition, OpenAI’s largest to date, marks a decisive measurement into hardware for the institution champion known for its generative AI models. The woody incorporates io straight into OpenAI.

Meanwhile, Ive, a erstwhile Apple plan chief, volition clasp independency for his plan firm, LoveFrom.

Ive is credited with designing the iPhone, iPad, and different cardinal Apple products. He volition presume plan and originative responsibilities crossed OpenAI and io. 

Integration into AI and merchandise teams

In a associated statement, OpenAI CEO Sam Altman and Ive said the io squad volition relocate to San Francisco to enactment intimately with OpenAI’s probe and merchandise teams.

The io startup, founded a twelvemonth agone by Ive and erstwhile Apple colleagues Scott Cannon, Tang Tan, and Evans Hankey, was antecedently operated arsenic portion of LoveFrom.

OpenAI presently owns a 23% involvement successful io, contributing $1.4 cardinal to the deal’s valuation. The remaining $5 cardinal volition beryllium transferred successful equity. 

The transaction volition bring io’s device-focused squad in-house, adding concern plan capableness to OpenAI’s portfolio. In a connection shared connected X, Altman described Ive arsenic “the top decorator successful the world.”

The woody comes weeks aft OpenAI agreed to get Windsurf, an AI coding assistant, for $3 billion.

Hardware investments

Alongside its in-house efforts, OpenAI has invested successful Physical Intelligence, a San Francisco-based robotics startup that raised $400 cardinal successful 2024 astatine a valuation of $2.4 billion.

That circular included information from Amazon laminitis Jeff Bezos. Physical Intelligence is gathering general-purpose AI to run successful carnal environments, suggesting OpenAI’s broader intent to brace bundle with tactile systems.

The acquisition of io reinforces that direction. While OpenAI did not disclose circumstantial products, the blog station referenced devices that “inspire, empower, and enable,” and emphasized IO’s ngo to construe AI capabilities into consumer-oriented signifier factors.

OpenAI’s acquisition of io highlights its strategy to physique retired carnal interfaces for its models, arsenic the competitory tract successful generative AI continues to widen with entries from Google, Anthropic, and xAI.

The station OpenAI ventures into hardware with $6.4B woody for legendary decorator Jony Ive’s startup io appeared archetypal connected CryptoSlate.