OpenAI has announced its largest acquisition to date, purchasing the AI device startup io for nearly $6.5 billion in an all-stock deal. Founded by former Apple designer Jony Ive, io will bring a dedicated AI device development team to OpenAI. This acquisition includes the expertise of Ive and other former Apple designers who contributed to iconic products like the iPhone.
Jony Ive, renowned for his role in shaping modern consumer technology alongside Steve Jobs, sees this collaboration as a continuation of his career achievements. After departing Apple in 2019, Ive has now partnered with OpenAI CEO Sam Altman, whom he describes as having exceptional foresight.
Altman has expressed ambitions to create an unprecedented consumer hardware product, leveraging AI to enhance human capabilities. The acquisition will add around 55 hardware engineers, software developers, and manufacturing experts to OpenAI's team, with the first products expected by 2026.
Despite this new venture, Altman does not foresee the new devices replacing smartphones, akin to how smartphones did not eliminate laptops.
OpenAI's acquisition of io is structured as a $5 billion equity deal, with the remaining value stemming from a previous agreement where OpenAI acquired a 23% stake in io.
