What happened?
OpenAI has officially acquired the AI hardware startup io, founded by former Apple Chief Designer Jony Ive, in a all-stock transaction valued at $6.4 billion.
The products created by Ive helped Apple transition from the brink of bankruptcy to the world’s highest-valued company. After leaving Apple, he established io, focusing on developing AI hardware products.
According to OpenAI, the first new devices designed by the io team in collaboration with LoveFrom are expected to be released in 2026. Reports suggest that these prototype devices may be wearable technology.
OpenAI acquires AI hardware startup io
Recently, OpenAI announced the acquisition of the AI hardware startup io, founded by legendary Apple designer Jony Ive, in a $6.4 billion all-stock deal.
During his tenure as Apple’s Chief Designer, Ive created iconic products like the iMac, iPod, iPhone, and Apple Watch, helping Apple evolve from the brink of bankruptcy to the world’s highest-valued company. After leaving Apple in 2019, he established the independent design studio LoveFrom, which counts renowned brands like Airbnb and Moncler among its clients.
A year ago, Ive, along with several former Apple colleagues Scott Cannon, Evans Hankey, and Tang Tan, founded the startup io in San Francisco, focusing on developing wearable hardware products that integrate AI. According to foreign media reports, io has been maintaining a low-profile collaboration with OpenAI, and now that the two entities have officially merged, the 55 employees of the io team, including hardware and software engineers, will be fully integrated into OpenAI’s operational framework.
Entering the AI hardware field to create wearable devices
This acquisition signifies OpenAI’s formal entry into the AI hardware domain. OpenAI CEO Sam Altman stated in a video that the products currently in use are actually legacies from decades ago. Today, we should reimagine how people interact with technology.
Altman shared that he had the opportunity to try out a prototype product from io, stating, “This is the coolest tech product I’ve ever seen.” Reports indicate that these prototype devices may be wearable technology, aiming to break away from the traditional mobile phone and keyboard computer framework to create a new interaction model. Altman further noted that OpenAI’s goal is to create a series of devices that fundamentally reconstruct people’s imagination of computers.
In contrast, Apple’s recent actions in AI strategy have been relatively conservative, having only introduced the “Apple Intelligence” feature without any clear consumer application results. According to foreign media reports, following the announcement of OpenAI’s acquisition of io, Apple’s stock price dropped more than 2% at one point.
Ive expressed in a statement that all his experiences over the past 30 years seem to have prepared him for this moment. He feels both nervous and excited about the responsibilities of the future, but is also grateful to be part of it.
According to OpenAI, the first new devices designed by the io team and LoveFrom are expected to be launched in 2026. This collaboration between Ive and Altman is not just a business acquisition, but the starting point for bringing AI consumer hardware products into the lives of the general public.
Source: BBC, Decrypt