OpenAI announced a significant acquisition, purchasing AI device startup io, founded by former Apple (AAPL, Financial) design chief Jony Ive, in a $6.4 billion all-stock deal. This marks OpenAI's formal entry into the hardware sector, aiming to create a next-generation AI device platform. The io team, including ex-Apple designers and engineers, will join OpenAI to work on new AI devices.
Prior to the deal, OpenAI had already acquired approximately 23% of io's shares, paying $5 billion in this transaction. The acquisition brings 55 professionals into OpenAI, with key figures like Evans Hankey and Tang Tan joining the company. Meanwhile, Jony Ive's design company LoveFrom will remain independent, leading OpenAI's design initiatives.
Sam Altman, CEO of OpenAI, emphasized the partnership aims to innovate AI hardware experiences beyond current devices. Ive highlighted this collaboration as a natural extension of his design career. The first AI device from this venture is expected to launch in 2026.
This acquisition is a strategic move for OpenAI, which has seen its valuation reach $300 billion. The company continues to expand its business, having recently acquired AI program tool Windsurf and invested in robotics startup Physical Intelligence.
