In a significant move that signals OpenAI's ambitious expansion beyond software, the AI powerhouse has acquired io Products, the hardware startup co-founded by legendary Apple designer Jony Ive, in a deal valued at $6.5 billion.
The acquisition, OpenAI's largest to date, will merge io's team of 55 engineers, scientists, and product development professionals with OpenAI's existing staff. While Ive will not formally join OpenAI as an employee, he will assume 'deep creative and design responsibilities' across both organizations, bringing his distinctive design philosophy to OpenAI's product ecosystem.
'I have a growing sense that everything I have learned over the last 30 years has led me to this place, and to this moment,' said Ive in a video announcement with OpenAI CEO Sam Altman. The British-born designer, who left Apple in 2019 after nearly three decades, emphasized that current technology products are 'decades old' and suggested that 'surely there's something beyond these legacy products.'
The partnership between Altman and Ive has reportedly been developing for over two years. Their collaboration aims to create a family of AI devices that will fundamentally reimagine human-computer interaction. According to industry sources, the first products from this venture are expected to debut in 2026 and will focus on moving consumers 'beyond screens,' with potential options including AI-powered headphones and camera devices.
This strategic acquisition positions OpenAI to compete directly with established tech giants like Apple, which has been criticized for lagging in AI development. Analyst Gil Luria of D.A. Davidson noted, 'OpenAI is interested in owning the next hardware platform so they don't have to sell their products through Apple iOS or Google's Android.'
The deal comes amid a flurry of acquisitions by OpenAI, including the recent $3 billion purchase of AI-assisted coding tool Windsurf. With a recent valuation of $300 billion following a $40 billion funding round in March, OpenAI is aggressively expanding its capabilities as it races against competitors like Google, Anthropic, and Elon Musk's xAI in the generative AI space.