OpenAI has announced its acquisition of Jony Ive's AI devices startup, io, for approximately $6.4 billion in an all-equity deal. This acquisition marks a significant move for OpenAI, as it expands its operations into hardware. Jony Ive, known for his tenure as Apple's chief design officer, will take on substantial creative and design roles within both OpenAI and io, although his design collective, LoveFrom, will remain independent.
The acquisition is set to integrate io's team more closely with OpenAI's research and engineering divisions. Founded just a year prior, io was established by Ive along with former Apple colleagues Scott Cannon, Tang Tan, and Evans Hankey. OpenAI already held a 23% stake in io before this purchase, which CEO Sam Altman described as a pivotal step in enhancing the company's hardware capabilities.
This transaction is OpenAI's largest to date, coming shortly after its agreement to acquire the AI-assisted coding tool Windsurf for $3 billion. The company has been actively expanding its portfolio, having previously acquired Rockset, an analytics database firm, in 2024.
Ive, who is credited with designing several iconic Apple products, launched LoveFrom after leaving Apple in 2019. The design firm has collaborated with various high-profile clients and has remained somewhat discreet about its specific projects.
The acquisition aligns with OpenAI's strategy to maintain a competitive edge in the generative AI sector, which is increasingly crowded with players such as Google and Anthropic. To support its hardware ambitions, OpenAI has also been hiring talent from other tech firms, indicating a clear commitment to integrating AI within physical products and enhancing its overall technological offerings.