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OpenAI Acquires Jony Ive’s io for $6.4B to Pioneer Post-Smartphone Devices

By  |  May 21, 2025

OpenAI has made a bold move into the hardware space with its $6.4 billion acquisition of io, the design-focused startup led by former Apple design chief Sir Jony Ive. The deal, which was first reported by the Financial Times, represents a significant bet on devices that could redefine how users interact with artificial intelligence.

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    The acquisition marks OpenAI’s full takeover of io, with the ChatGPT developer purchasing the remaining 77% stake in an all-equity transaction valued at $5 billion. OpenAI already held a 23% stake in the company. The transaction brings io’s 55 employees under OpenAI’s umbrella, although Ive himself will not join as a formal employee, according to people familiar with the matter cited by the Financial Times.

    OpenAI has indicated that the goal behind the deal is to develop a new category of consumer hardware for the “AGI era,” referring to artificial general intelligence—AI that can perform most tasks as well as or better than humans. “We have the opportunity here to kind of completely reimagine what it means to use a computer,” said OpenAI founder Sam Altman in a video announcement.

    Although Jony Ive will not hold an internal role at OpenAI, he will continue to play a crucial part in shaping the company’s product vision. According to Financial Times, OpenAI confirmed that Ive would take on “deep creative and design responsibilities across OpenAI and io,” leveraging his extensive experience in creating groundbreaking consumer products. His design firm, LoveFrom—which has collaborated with brands like Ferrari—will remain independent.

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    Ive is best known for his influential role at Apple, where he helped design iconic products such as the iPhone, iPod, and Apple Watch over nearly three decades. After leaving the tech giant in 2019, he maintained a lower public profile while working on architectural and design projects, including a San Francisco office space in Jackson Square.

    The deal reflects a growing shift among tech leaders toward exploring alternatives to smartphones as the primary interface with AI. Per Financial Times, OpenAI is positioning itself at the forefront of this transition, even as other ventures have struggled. Last year, start-up Humane introduced an AI wearable pin, but the device failed to gain traction and the company was later acquired by HP.

    This move comes amid a broader rethinking of personal technology. In December, OpenAI entered into a partnership with Apple, integrating ChatGPT into Siri and other tools as part of Apple’s AI overhaul initiative, dubbed “Apple Intelligence.” While Apple is also working to update Siri, its own efforts have encountered delays.

    Even Apple executives have begun hinting at a post-smartphone reality. Eddy Cue, the company’s services chief, recently told a U.S. court, “You may not need an iPhone 10 years from now, as crazy as it sounds.”

    Source: Financial Times