A Design Revolution: OpenAI Acquires Jony Ive’s io in $6.5 Billion Deal

In a groundbreaking move that sent ripples through both the AI and hardware industries yesterday, OpenAI announced the acquisition of io, the secretive device startup co-founded by legendary Apple designer Jony Ive. The all-equity transaction values the startup at a staggering $6.5 billion and positions I've at the helm of OpenAI’s creative and design initiatives.

The Meeting of Two Visionaries

This remarkable partnership brings together Sam Altman, the driving force behind OpenAI’s rapid ascent in generative AI, and Jony Ive, the design mastermind responsible for some of Apple’s most iconic products including the iPhone, iPod, iPad, and Apple Watch. The collaboration has been years in the making, with Altman and I've secretly working together to envision devices that could move users beyond the screens that dominate our current digital experience.

Following the announcement, Altman expressed his enthusiasm on X (formerly Twitter), calling Ive “the greatest designer in the world” and sharing his excitement about creating “a new generation of AI-powered computers.” This sentiment captures the ambitious vision driving this acquisition—to fundamentally transform how we interact with technology.

What This Means for the Future

The deal will see Ive and his team of approximately 55 employees join OpenAI to form a new hardware division led by Peter Welinder. While Ive’s design firm, LoveFrom, will remain independent and continue pursuing its own projects, it will also serve as a client for OpenAI and receive a stake in the company.

What’s particularly exciting is OpenAI’s announcement that the first products resulting from this partnership are expected to be unveiled in 2026. These devices aim to create novel ways for users to interact with AI, potentially moving beyond traditional screens toward more intuitive and seamless interfaces. Altman hopes to recapture “some of the delight, wonder, and creative spirit” that he first experienced using an Apple computer three decades ago.

Industry Implications

This strategic acquisition positions OpenAI to directly challenge established hardware giants, most notably Apple. In fact, following the announcement, Apple’s stock reportedly declined by 2%. The irony isn’t lost on industry observers—Ive, who helped establish Apple’s design philosophy and product identity during his 27-year tenure, could now be instrumental in creating the next paradigm of computing devices that might render smartphones less central to our digital lives.

For OpenAI, which has already transformed the AI landscape with ChatGPT, this move represents a significant expansion beyond software into the physical realm of consumer hardware. It comes on the heels of another strategic hiring—earlier this month, former Meta executive and Instacart CEO Fidji Simo was appointed to oversee consumer applications at OpenAI.

Looking Ahead

The acquisition, expected to close this summer, marks a fascinating convergence of AI innovation and world-class design thinking. As these two disciplines merge under the stewardship of visionaries like Altman and Ive, we stand at the threshold of what could be the next evolutionary leap in how humans interact with technology.

Whether these upcoming devices will successfully create a successor to the smartphone era remains to be seen. But one thing is certain: with the combined talents of OpenAI’s AI expertise and Ive’s unparalleled design sensibilities, the products emerging from this partnership will be worth watching closely as they begin to materialize in 2026.

The future of AI-powered computing just got a lot more interesting—and potentially a lot more beautiful.