About two years after rumors surfaced of a secret collaboration between OpenAI CEO Sam Altman and famed Apple designer Jony Ive, OpenAI has now officially confirmed its entry into hardware with a massive $6.5 billion acquisition of io Products, the startup co-founded by Ive. This marks a major strategic shift for OpenAI, moving beyond software like ChatGPT into building AI-powered physical devices designed to integrate AI more deeply into everyday life.
Jony Ive, renowned for his iconic designs of the iPhone, iMac, and MacBook, will play a central role in shaping OpenAI’s consumer hardware future. His design firm LoveFrom will remain independent, but Ive and his team will take on significant “deep design and creative responsibilities” across both io Products and OpenAI.
The acquisition deal includes $5 billion in equity, with OpenAI already owning a 23% stake from a prior collaboration starting in 2023. The io division will be led by OpenAI executive Peter Welinder, who brings expertise from robotics and early product development. This team — described as top-tier hardware, software, science, and manufacturing experts — will collaborate closely with OpenAI’s research and engineering teams based in San Francisco.
Altman emphasized to employees that this acquisition opens the door for OpenAI to do “the biggest thing we’ve ever done,” with projections that the move could boost OpenAI’s valuation by up to $1 trillion. While details about the actual product remain secret, speculation suggests something more ambitious than a smartphone — possibilities include smart glasses, a car interface, humanoid robots, or something akin to Humane AI Pin or Rabbit R1 devices.
Both Altman and Ive stressed their collaboration is built on “friendship, curiosity and shared values.” Ive expressed that decades of experience have prepared him for this moment, acknowledging the responsibility and excitement ahead. Altman highlighted the necessity of combining cutting-edge technology with thoughtful design and deep understanding of people — qualities he sees uniquely embodied by Ive and his team.
In short, OpenAI’s acquisition of io Products signals a bold push to turn AI from a software marvel into tangible, everyday hardware, with one of the world’s most celebrated designers at the helm. This could very well redefine how we interact with AI in physical form in the near future.
