OpenAI is moving deeper into consumer hardware by acquiring io, the device startup that CEO Sam Altman and Jony Ive have been quietly developing for two years. The all-equity deal values io at $6.5 billion and places one of Apple’s best-known former design leaders at the center of OpenAI’s next product push.
The agreement also gives Ive and his design firm, LoveFrom, a leading role in OpenAI’s creative and design work. For a company best known for ChatGPT, the move widens the focus from software and applications toward physical products built around generative AI.
What OpenAI is buying
Io is a device startup built around AI-powered consumer products. Under OpenAI, io will develop AI-powered consumer devices and other projects, according to the source article.
The startup has a staff of around 55 engineers, scientists, researchers, physicists, and product development specialists. Those employees will join OpenAI as part of the acquisition.
Several io employees previously worked on major Apple products. The group includes former Apple designers Scott Cannon, Evans Hankey, and Tang Tan, who helped build some of the company’s most recognizable products.
OpenAI already held a 23% stake in io through an agreement between the companies last year. Because of that earlier stake, OpenAI will pay $5 billion to fully acquire io. The deal is described as the ChatGPT maker’s largest acquisition ever.
Why Jony Ive matters to OpenAI
Ive is widely associated with the design of iPhones, iPods, iPads, and Apple Watches. His arrival gives OpenAI a direct link to the design history of consumer devices that shaped how people use technology every day.
In the deal, Ive is not handing over LoveFrom. He is retaining control of the design firm, which will continue to operate independently. At the same time, LoveFrom will now lead creative and design work at OpenAI.
That makes the arrangement unusual. OpenAI is buying io, bringing its staff inside the company, and placing Ive and LoveFrom in a broad design role without absorbing LoveFrom itself.
The Wall Street Journal reported that Ive will have an expansive role, including input into future versions of ChatGPT and more. That matters because the product question is not only what kind of device OpenAI might build, but also how ChatGPT and future AI tools may feel when used outside a laptop or smartphone.
The device ambition
Altman said in a post on X that he was excited to try to create a new generation of AI-powered computers. In a video posted by OpenAI, he said io’s mission is to create a family of AI devices that will let people use AI to produce “all sorts of wonderful things.”
Ive said in the same video that everything he has learned “over the last 30 years has led me to this place and this moment.” He also said the first AI device io is working on has “completely captured” his imagination.
The exact form of OpenAI’s devices remains unclear. The source article says Altman and Ive have reportedly been working on a device that moves consumers “beyond screens.” Bloomberg reports that Ive and Altman’s first devices are slated to debut in 2026.
Later in the OpenAI video, Altman said using a laptop or smartphone to access ChatGPT was too cumbersome. He suggested he would rather use a device more integrated into his everyday life.
The Information first reported on OpenAI’s discussions to acquire io in March. At that time, the companies were said to be discussing a device that would bring a version of the technology from the movie Her to life.
A wider race in AI hardware
The deal comes while AI devices are still in an early stage. The source article points to both failed and more promising attempts to build new hardware around AI.
Altman was an early investor in Humane, an AI hardware company founded by former Apple employees. Humane made an AI-powered “pin,” but after a series of stumbles, it was sold to HP and its devices were sunsetted.
Other AI device formats have shown more promise. Meta’s AI-powered smart glasses, developed with EssilorLuxottica, have achieved strong sales and adoption among consumers. Google also unveiled its version of AI smart glasses this week, developed with Samsung, Warby Parker, and other partners.
Those examples underline the central uncertainty around OpenAI’s hardware effort. AI may need new consumer devices, but it is not yet clear which shape will work best for daily use.
Pressure on Apple
OpenAI’s collaboration with Ive could put more pressure on Apple in consumer hardware. Ive was one of Apple’s former design heads, and many io employees also came from Apple’s product design world.
The source article says Apple has struggled in recent years to develop AI features that keep pace with technology from OpenAI and Google. Apple’s stock fell 2% on Wednesday after the OpenAI and Ive collaboration was announced.
OpenAI has also been expanding its consumer business since the launch of ChatGPT in 2022. Earlier this month, the company appointed former Meta executive and Instacart CEO Fidji Simo to lead its consumer applications.
Taken together, the acquisition of io, the role for LoveFrom, and the focus on AI-powered consumer devices show OpenAI trying to define how generative AI may move beyond today’s screens. The company has not yet shown what that device will be, but it has now placed major design talent behind the effort.