OpenAI Acquires Jony Ive’s Startup in $6.5 Billion Deal to Create Next-Generation AI Devices

OpenAI acquired Jony Ive's hardware startup io Products for $6.5B, appointing him as creative head to develop innovative AI devices. A prototype promises a breakthrough in AI hardware design.

Categorized in: AI News Creatives
Published on: May 22, 2025
OpenAI Acquires Jony Ive’s Startup in $6.5 Billion Deal to Create Next-Generation AI Devices

OpenAI Acquires Jony Ive's Hardware Startup, Appoints Him Creative Head

OpenAI has acquired io Products, the hardware startup co-founded by Jony Ive, for $6.5 billion in an all-stock deal. Ive, famously known as the chief designer behind the iconic early iPhone, will now lead creative design at OpenAI to develop new devices optimized for the generative AI era.

Before this acquisition, Ive’s design firm LoveFrom collaborated with OpenAI for two years, focusing on generative AI hardware. This move comes as many startups have struggled to build AI-specific devices due to high computing demands and usability challenges, such as those faced by Humane’s AI Pin.

What This Means for AI Hardware

OpenAI’s goal is to combine its advanced AI technologies, including the popular ChatGPT, with Ive’s product design expertise that made devices like the iPhone household names. By bringing design and technology together, OpenAI hopes to create hardware that breaks away from legacy product limitations.

CEO Sam Altman and Ive shared that they already have a prototype device, hinting at something groundbreaking but without revealing details. Altman described it as “the coolest piece of technology the world will have ever seen.”

Market and Industry Impact

The deal highlights OpenAI’s ambition to own its hardware platform, bypassing traditional ecosystems like Apple’s iOS and Google’s Android. Analyst Gil Luria noted this mirrors Meta’s strategy with devices like Quest VR goggles and Meta Ray-Bans.

Apple’s stock dropped slightly after news of the acquisition, as the company has been slower to integrate advanced AI features compared to Android competitors. This new development could signal a shift in control over AI hardware platforms.

Challenges in AI Device Development

Several companies have attempted to build dedicated AI devices, but many have faced technical and market hurdles. For instance:

  • Humane AI struggled with its AI Pin, criticized for short battery life, overheating, limited functionality, and high costs.
  • Rabbit has sold over 100,000 units of its r1 device, but reviewers point out that its functionality still falls short compared to smartphones.

OpenAI’s move to integrate hardware design with its AI technology could address these issues by focusing on better user experience and performance.

Design Meets AI: What Creatives Should Watch

For creatives involved in product design, UI/UX, or AI-driven projects, this acquisition signals a new wave of opportunity. The fusion of design sensibility and AI capabilities may lead to devices that prioritize intuitive interaction with AI, creating new ways to engage with technology.

Keeping an eye on OpenAI's hardware developments could inspire fresh approaches to integrating AI into everyday tools. Those interested in expanding their AI skills can explore relevant courses focused on AI and design integration at Complete AI Training.

As hardware evolves beyond current smartphones, expect innovative designs that rethink how AI fits into daily life, enabling creatives to explore new frontiers of interaction and expression.


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