OpenAI Acquires Jony Ive’s AI Startup io in $6.5 Billion Deal to Revolutionize AI Hardware

OpenAI has made a huge move by buying the AI hardware business IO, which was co-founded by famous Apple designer Jony Ive. The deal is worth around $6.5 billion and shows that OpenAI is expanding beyond software. This is OpenAI’s biggest purchase so far, and it lays the groundwork for a big push into consumer gadgets that use AI.

A New Era for AI Devices

OpenAI not only gets a potential firm with this purchase, but also Jony Ive, the creative head behind famous Apple products, including the iPhone, iPod, MacBook, and Apple Watch. Ive and other former Apple bigwigs, such as Scott Cannon, Evans Hankey, and Tang Tan, started the company iO. They all have a lot of experience in product design and hardware engineering, which is uncommon to find in the AI field.

There will be about 55 experts in design, software, and production in the new OpenAI hardware section. What is their mission? To make a new type of AI-native gadget that goes beyond what smartphones and laptops can do now.

OpenAI CEO Sam Altman remarked, “AI is such a big step forward in what people can do that it needs a new kind of computer.”

What This Means for the Future of AI and Tech

OpenAI wants to make hardware that doesn’t just work well, but changes the world. Although they haven’t given out many details about the products yet, Altman and Ive have hinted at a range of gadgets that are built from the ground up for artificial general intelligence (AGI), which is the kind of AI that mimics how humans think.

Ive said that the world of consumer technology is ready for change right now. He remarked, “People want something new,” suggesting a future where AI will be more naturally interwoven into daily life.

Their first device is set to come out in 2026, and both executives guaranteed that it would be “a totally new kind of thing,” not just an improvement on what is already out there.

Strategic Implications for Apple and the Industry

This decision also means that Apple will have to compete with others in the AI race, where it has been falling behind. Steve Jobs previously called Ive his “spiritual partner,” but now he is helping to make items that compete with Apple’s. This might have big effects for the Cupertino powerhouse.

OpenAI, Google, and Meta have all made progress that Apple’s AI projects have had a hard time keeping up with. Its newest AI features still depend on OpenAI’s ChatGPT in part, which shows how much it still needs it.

Investors, on the other hand, paid attention. After the news, Apple’s stock fell 2.3%, which was bad news for a firm that was already struggling with AI-driven disruption.

The Role of LoveFrom and What’s Next

Ive’s design studio, LoveFrom, will still be in business, but it will now be in charge of designing everything for OpenAI, including its software. This means that the designers at LoveFrom will probably change the way things like ChatGPT look and work to make them more user-friendly and visually appealing.

LoveFrom will keep working with some clients, like Ferrari and Airbnb, but they will stop taking on new clients so they can focus on the OpenAI project.

Altman called the chance to work with Ive a “dream collaboration.” He also said that the next phase of AI innovation will mix beautiful design with the potential to change things.

Altman remarked in an interview that “Jobs would be damn proud,” alluding to the late Apple co-founder.

Investors and Partnerships

The IO business had already gotten money from well-known investors like Emerson Collective, Sutter Hill Ventures, Thrive Capital, Maverick Ventures, and SV Angel. In late 2024, OpenAI already owned 23% of io, thus it made sense for them to buy the rest of the company.

Sam Altman does not own any equity in io, which is interesting because it shows that he is more interested in long-term strategic growth than in making money for himself.

Final Thoughts

This purchase is a big deal for the tech industry. OpenAI is no longer simply a software firm; it’s now a full-stack AI company that does research, builds applications, and shortly, makes consumer hardware.

People are excited to see what the Altman-Ive team comes up with first, but one thing is clear: the future of AI won’t only be about smart algorithms; it will also be about design that is attractive, easy to use, and changes things.

Keep watching. AI could become not only smarter but also more human in 2026.