OpenAI has unveiled a significant advancement in consumer hardware through its acquisition of io Products, a startup co-founded by former Apple chief designer Sir Jony Ive and OpenAI CEO Sam Altman. This deal, reportedly valued at $6.5 billion (£5.1 billion), allows OpenAI to fully oversee the company, marking an important milestone as the AI organization aims to transform human interactions with technology.
This agreement brings Ive—one of the most impactful product designers of contemporary times—into the leadership of OpenAI at a pivotal stage in the company’s growth. In a statement from OpenAI, the firm expressed that this development would enable it to “redefine what it means to use a computer” while crafting new AI-optimized devices.
Sir Jony Ive, renowned for his essential role in designing the iPhone, iPad, and MacBook during his three-decade career at Apple, will steer the creative vision of OpenAI’s hardware projects. He will take on what the company describes as “deep design and creative responsibilities” for its hardware initiatives.
The acquisition comes after a silent yet close partnership between OpenAI and io Products, which was subtly established in 2024 by Ive alongside a group of former Apple engineers. Prior to the acquisition, OpenAI had already owned a 23% share in io.
Although neither organization has provided detailed information regarding upcoming products, Altman has confirmed that the team has already created a prototype AI device. “This is about rethinking what it means to use a computer,” he stated. “We are constructing a range of devices that are inherently AI, as today’s hardware cannot fully harness the capabilities of this technology.”
The new hardware division will incorporate approximately 55 engineers into OpenAI’s existing workforce, enhancing the company’s technological expertise in a domain where it has so far been limited.
Ive left Apple in 2019 to create his own design collective, LoveFrom, which has collaborated with clients such as Airbnb and luxury fashion brand Moncler. The announcement indicated that LoveFrom will continue to operate independently and maintain partnerships with third-party companies. The startup io was also reportedly supported by Emerson Collective, the social change organization established by Laurene Powell Jobs.
The announcement triggered immediate reactions in the technology sector. Apple’s share price dropped by more than two percent following the news, signaling investor apprehension regarding the competitive challenge that Ive might represent when working with one of the leading players in artificial intelligence. Investors may be cautiously observing the overlap between Apple’s hardware ecosystem and OpenAI’s growing aspirations.
This development is in line with a wider trend within Big Tech. Companies like Apple, Google (with its Pixel and Tensor initiatives), and Meta are increasingly integrating robust AI features directly into their hardware—from wearables and smartphones to virtual reality platforms. OpenAI’s foray into this field highlights the importance of hardware in the next generation of AI adoption and user engagement. As noted last month, OpenAI is making aggressive strides in product development, even while facing criticism for allegedly sacrificing safeguards in a hurry to introduce powerful new tools (read more on those concerns here).
The complete OpenAI announcement can be accessed on the company’s website: https://openai.com/sam-and-jony.
