OpenAI is acquiring io, the stealth hardware startup founded by Apple design legend Jony Ive and OpenAI CEO Sam Altman, in an all-equity deal that values the firm at $6.5 billion. This marks OpenAI’s largest acquisition to date and brings some of Apple’s most celebrated design minds under its roof.
The startup, which has quietly operated for two years, will now be part of OpenAI’s vision to create a new class of AI-powered consumer devices. The company’s 55-person team, including former Apple talents like Scott Cannon, Evans Hankey, and Tang Tan, will join OpenAI as part of the deal. While OpenAI already owned 23% of io from an earlier investment, it will now pay approximately $5 billion to acquire the remaining stake.
Altman confirmed the news in a post on X, calling Ive “the greatest designer in the world” and saying he’s thrilled about the partnership to build a “new generation of AI-powered computers.” In a video released by OpenAI, both Altman and Ive expressed their ambition to build a family of devices that go beyond the limitations of screens and integrate AI more naturally into daily life.
Jony Ive to Lead OpenAI’s Design Vision
As part of the deal, Jony Ive’s design firm, LoveFrom, will take the creative lead on OpenAI’s future hardware and software products, while still remaining independent. Ive, famous for designing the iPhone, iPad, and Apple Watch, now steps into the generative AI space with the same influence he had on the mobile era.
According to The Wall Street Journal, the first products from this collaboration are expected to launch in 2026. While exact form factors remain under wraps, reports hint at a shift “beyond screens”—possibly hinting at a wearable or ambient AI assistant. The project is said to echo the vision of the movie Her, where voice-based AI interactions play a central role in daily life.
Altman has previously backed other AI hardware experiments, such as Humane’s AI Pin, which failed to gain traction and was ultimately sold to HP. In contrast, Meta’s AI smart glasses, developed with EssilorLuxottica, have seen stronger consumer interest, as has Google’s upcoming AI eyewear developed with Samsung and Warby Parker.
Competing With Apple in a New Consumer AI Era
The partnership signals a bold move by OpenAI to take on Apple directly in the consumer device market, with AI as the new battleground. Apple’s AI strategy has lagged behind rivals like OpenAI and Google, and news of the acquisition sent Apple stock down 2% on Wednesday.
OpenAI’s new head of consumer applications, Fidji Simo—formerly of Meta and Instacart—will help lead this next phase of product development. With Ive and Altman united, the company now blends deep AI innovation with iconic product design experience.
Though the exact nature of the first product remains uncertain, Altman has made it clear: laptops and smartphones aren’t the future. OpenAI wants something more seamless, more embedded in our lives—devices that bring AI to us, not the other way around.
