OpenAI has acquired io, the AI hardware startup founded by former Apple design chief Sir Jony Ive, in a deal valued at $6.5 billion. This acquisition marks OpenAI's most significant foray into the hardware domain, aiming to develop devices optimised for an AI-first world. Having already held a 23 per cent stake in the company, OpenAI, the creator of ChatGPT, paid $5 billion in equity to acquire the remaining 77 per cent.

Sam & Jony introduce io pic.twitter.com/ej5K59kJq3

— OpenAI (@OpenAI) May 21, 2025

The Genesis of io

Established in 2023 by Sir Jony Ive and OpenAI CEO Sam Altman, io was conceived to create devices where artificial intelligence is central to the user experience, rather than an added feature. The startup assembled a team of 55 experts, including former Apple designers, to pioneer hardware that reimagines user interaction in the age of AI.

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Jony Ive's Role Post-Acquisition

While all io employees will transition to OpenAI, Jony Ive will not join as a full-time employee. Instead, he will serve as a consultant, bringing his design expertise to OpenAI's projects while continuing to lead his independent design firm, LoveFrom. His involvement is expected to influence the aesthetic and functional aspects of OpenAI's forthcoming hardware products.

Vision for AGI-Era Devices

OpenAI's CEO, Sam Altman, envisions this acquisition as a step towards creating a suite of products tailored for the era of Artificial General Intelligence (AGI). The goal is to develop devices that move beyond traditional screens and interfaces, offering more intuitive and seamless interactions with AI. Although specific product details remain under wraps, insiders suggest that the new hardware will differ significantly from existing smartphones, potentially introducing entirely new forms of user engagement.

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Implications for the Tech Industry

This acquisition not only signifies OpenAI's commitment to integrating AI into physical devices but also positions the company as a potential competitor to established tech giants like Apple. Given Apple's recent challenges in rolling out AI features, OpenAI's move could accelerate innovation in the AI hardware space, prompting a reevaluation of how users interact with technology in their daily lives. OpenAI's acquisition of io represents a strategic expansion into hardware, leveraging Jony Ive's design legacy to redefine user interaction in the AI era. As the company embarks on this new venture, the tech world watches closely to see how this fusion of design and artificial intelligence will shape the future of consumer devices.