OpenAI Buys Jony Ive’s Startup for $6.5 Billion to Develop AI Hardware

OpenAI has taken a significant step toward reshaping the future of consumer technology by acquiring io, a hardware design startup co-founded by former Apple design chief Sir Jony Ive. Valued at approximately $6.5 billion, the all-equity transaction marks the company’s largest acquisition to date and formalizes its transition into the consumer hardware space. The deal was officially announced on May 22.

io was founded to develop new devices built specifically for the age of artificial general intelligence (AGI), a form of AI with cognitive capabilities comparable to humans. The startup was quietly launched in 2023 under the LoveFrom creative studio, bringing together former Apple veterans including Evans Hankey, Scott Cannon, and Tang Tan, alongside Ive.

Strategic Expansion Beyond Software

The acquisition not only expands OpenAI’s footprint beyond software but also reflects CEO Sam Altman’s long-standing ambition to rethink the way people interact with computers. Altman and Ive had been working together behind the scenes for nearly two years prior to the acquisition. Their collaboration focused on exploring how design and advanced AI could merge to produce fundamentally new forms of computing.

As part of the agreement, OpenAI will integrate io’s 55-member team consisting of engineers, scientists, and manufacturing specialists. Ive will not take on a formal role at OpenAI but will provide creative direction across both organizations through his firm LoveFrom, which will continue to operate independently.

LoveFrom is now positioned as OpenAI’s long-term design partner, tasked with shaping the aesthetic and functional vision of upcoming hardware, future ChatGPT iterations, and other consumer-facing platforms.

Developing Post-Screen Computing Experiences

Although specific product details remain under wraps, early concepts reportedly include wearable technologies such as AI-enabled glasses or headphones designed to interact with users in real time through contextual understanding. Altman has emphasized that the current leap in AI capability necessitates entirely new computing interfaces—ones that go beyond conventional screen-based interactions.

The two leaders issued a joint statement outlining their shared view that as machines gain the ability to perceive and process information in more human-like ways, the tools used to interact with them must evolve accordingly. Their ambition is to build a new category of devices that redefines what a personal computing experience looks and feels like.

Ive, known for crafting iconic products like the iPhone, iPad, and MacBook during his tenure at Apple, left the company in 2019 and later launched LoveFrom. The design firm has since partnered with companies such as Ferrari, Airbnb, and Moncler. His return to consumer hardware with io, and now OpenAI, marks a continuation of his lifelong pursuit to push the boundaries of form and function in technology.

Legacy Talent Joins OpenAI as Hardware Efforts Scale

As part of the integration, former Apple executives Tang Tan and Evans Hankey—who led hardware design for key product lines including the iPhone and Apple Watch—will officially join OpenAI. Their addition brings seasoned hardware development expertise to the AI lab as it prepares to deliver its first physical products to market.

OpenAI’s move comes amid a broader industry shift toward AI-embedded devices, with tech leaders such as Apple, Meta, and Google also exploring new platforms. Analysts view the partnership with Ive and the creation of bespoke AI-native devices as a strategic attempt by OpenAI to influence the next wave of human-machine interaction.

Timeline and Broader Industry Implications

The first hardware offerings from the OpenAI-io collaboration are expected to be released in 2026. Until then, both organizations will continue to operate from their respective San Francisco offices, with io’s creative and development work centered in its Jackson Square studio.

The acquisition positions OpenAI to challenge the conventional boundaries of device design and user experience, moving beyond software applications like ChatGPT and into tangible products that reshape everyday interaction with artificial intelligence.

Altman described the project as deeply ambitious, noting that the fusion of AI and design expertise could give rise to a generation of products unlike anything currently on the market. He signaled that this is just the beginning of what the team envisions as a long-term effort to redefine personal technology in the AI era.