OpenAI is snatching up io, a device startup that CEO Sam Altman and famous Apple designer Jony Ive have been quietly working on for two years, in a deal that values the startup at $6.5 billion. The Wall Street Journal first reported this juicy news. As part of this intriguing deal announced on Wednesday, Ive and his design firm, LoveFrom, are set to take the helm of creative and design work at OpenAI.
The collaboration between OpenAI and Ive, known for his work on numerous Apple products like iPhones, iPods, and Apple Watches, is a significant move in the realm of generative AI. Since the launch of ChatGPT in 2022, OpenAI has been ramping up its consumer business. The recent appointment of former Meta executive and Instacart CEO Fidji Simo to lead consumer applications is a testament to this expansion.
Ive’s involvement with OpenAI could potentially shake up the consumer hardware market, posing a challenge to Apple. With Apple struggling to keep up with AI advancements from OpenAI and Google, the partnership between OpenAI and Ive has already caused a 2% dip in Apple’s stock value. The acquisition of io brings a team of 55 skilled professionals, including former Apple designers, under the OpenAI umbrella. Ive will maintain control of LoveFrom while guiding io to develop AI-powered consumer devices and other innovative projects. The first devices resulting from Ive and Altman’s collaboration are expected to hit the market in 2026, promising to revolutionize the way consumers interact with AI technology.
OpenAI’s acquisition of io, which comes after holding a 23% stake in the startup, signals a significant investment of $5 billion. This move marks OpenAI’s largest acquisition to date, solidifying its position in the competitive AI landscape. In a video shared by OpenAI, Altman expressed the shared mission of io to enable people to leverage AI for creating remarkable innovations. Ive, on the other hand, emphasized how his decades of experience have led him to this pivotal moment, hinting at the groundbreaking AI devices in the pipeline.
As the world of AI devices continues to evolve, OpenAI’s partnership with io hints at a future where AI seamlessly integrates into everyday life. With the rise of AI-powered smart glasses by Meta and Google, the possibilities for AI devices are endless. Altman’s vision for a more integrated AI experience suggests a shift away from traditional devices like laptops and smartphones.
The acquisition talks between OpenAI and io first surfaced in March, with plans to bring a futuristic concept akin to the movie “Her” to reality. The collaboration between Altman, Ive, and their respective teams promises to usher in a new era of AI innovation that could reshape the tech landscape for years to come.
