Jony Ive Joins OpenAI After $6.5 Billion Acquisition of His AI Startup

OpenAI has acquired io, an AI hardware startup co-founded by former Apple design chief Jony Ive, in a $6.5 billion all-stock deal. Ive, along with key Apple veterans, will now work directly with OpenAI CEO Sam Altman to develop new AI-powered devices. This marks the company’s biggest acquisition to date and signals OpenAI’s formal entry into consumer hardware.

Ive, Altman, and a New Vision for AI Devices

The acquisition brings together Ive’s new firm io, formed in 2023 with Scott Cannon, Evans Hankey, and Tang Tan, and OpenAI’s core engineering and research teams. The merger gives OpenAI access to a team of 55 hardware engineers, designers, and product developers—most of them former Apple talent.

OpenAI said the merger will focus on building a “new family of products” designed for the age of artificial general intelligence. Altman and Ive have been collaborating for two years, initially exploring design ideas. That early work has now evolved into a full product development pipeline.

“This is a totally new kind of thing,” Altman said, referencing plans for a hardware form factor designed specifically for AI capabilities, not a smartphone replacement. Ive added that existing devices reflect a “sort of unease” with current technology, and that people are ready for something new.

The new hardware division will remain based in San Francisco, split between io’s Jackson Square workspace and OpenAI’s main offices. Evans Hankey, Tang Tan, and Scott Cannon will officially become OpenAI employees.

Apple Veterans Build for Apple’s Rival

The move puts pressure on Apple, which has lagged in AI development and now finds itself dependent on OpenAI for ChatGPT integration in Siri. Ive’s departure from Apple in 2019 was positioned as a friendly split, but no joint product ever materialized. Now, Apple faces the possibility of losing more key talent as OpenAI builds hardware from the ground up.

Altman said the goal is to reach a level of quality in consumer hardware that “has never happened before.”

According to Bloomberg, the $6.5 billion valuation includes $5 billion in equity and reflects a 23% stake OpenAI had already acquired in io last year. The deal is expected to close by summer, pending regulatory approval.

While specific product details remain under wraps, the first device is expected to launch in 2026. Altman compared the moment to Apple’s early 2000s renaissance. Ive called the collaboration the most meaningful work of his career since the iPhone.

As reported by Bloomberg, the partnership also includes continued contributions from LoveFrom, Ive’s design collective. LoveFrom will lead design efforts across OpenAI’s software and hardware products, while remaining independent.

Ive summed up the collaboration simply: “I’ve felt that my most important and useful work is ahead.”

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