San Francisco, May 22, 2025 — OpenAI has acquired Sir Jony Ive’s hardware startup, io Products, in a $6.5 billion all-stock deal, marking a significant expansion into consumer hardware. Ive, renowned for designing iconic Apple products like the iPhone, will lead OpenAI’s hardware division, bringing his design expertise to the development of AI-powered devices. His design firm, LoveFrom, will remain independent while collaborating closely with OpenAI on future projects. Wikipedia+5Reuters+5The Times of India+5Reuters+3Axios+3AP News+3The Washington Post+8AP News+8Reuters+8

The acquisition includes a $5 billion equity investment, increasing OpenAI’s stake in io from a previous 23%. CEO Sam Altman and Ive have hinted at a prototype device in development, describing it as potentially unprecedented in technological advancement. This strategic move aims to establish OpenAI’s own device platform, independent of dominant systems like Apple’s iOS and Google’s Android. Axios+2AP News+2Reuters+2Axios+3Reuters+3The Washington Post+3

Ive co-founded io in 2023, and LoveFrom has been collaborating with OpenAI for two years on AI-focused products. The companies aim to develop “physical AI embodiments”—devices that bring generative AI into the physical world, potentially through cars, robots, or AI-powered wearables. Wikipedia+2Reuters+2AP News+2AP News

This acquisition positions OpenAI among several tech giants actively investing in post-smartphone era devices, signaling a shift from being primarily a backend technology provider to becoming a mainstream consumer brand. The Times of India+4Axios+4The Washington Post+4

As the tech industry anticipates the unveiling of OpenAI’s first hardware developments next year, the collaboration with Jony Ive underscores the company’s commitment to shaping the future of AI through thoughtfully designed, user-friendly hardware. The Times of India+1Axios+1