OpenAI just made its boldest move yet: a $6.5 billion all-stock acquisition of io, the stealth AI hardware startup co-founded by Jony Ive, the man behind the iPhone. It's not just a talent grab—it's a statement. With this deal, OpenAI now controls a 55-person elite unit of former Apple (AAPL, Financial) engineers, designers, and manufacturing veterans, all handpicked by Ive. The goal? Build a new class of AI-powered devices from scratch. Altman called it “a crazy, ambitious thing to make.” Investors should be paying attention.
The collaboration has been brewing behind the scenes for nearly two years. Ive says it feels like everything he's done so far was just preparation for this. Altman? He thinks Steve Jobs would be “damn proud.” While the duo won't reveal what the product is, they're confident it won't kill the smartphone—but could challenge its role. Their first device is expected to launch in 2026, and early comments suggest it won't look like anything on the market today. If successful, this could redefine how we interact with AI—moving beyond screens and into something more intuitive, more human.
Apple may not say it out loud, but this has to sting. Ive was once described as Jobs' “spiritual partner.” Now he's building the next big thing—with someone else. Apple's own AI push has been underwhelming, even leaning on OpenAI's ChatGPT to patch the gaps. That makes this partnership more than just another acquisition—it could be the start of a new device war, where the next iPhone moment belongs to OpenAI.
