OpenAI announced Wednesday that it will acquire io, the artificial-intelligence hardware startup co-founded by renowned designer Sir Jony Ive, in an all-stock transaction valued at just under $6.5 billion. Under the terms of the deal, OpenAI will issue approximately $5 billion worth of stock to existing io shareholders, marking the largest acquisition in OpenAI’s history as it moves decisively into the consumer hardware space.
Founded in 2024 by Ive alongside Scott Cannon, Evans Hankey and Tang Tan, io was established to develop a new generation of AI-native devices that blend sophisticated machine intelligence with thoughtful industrial design. The alliance traces back two years, when Ive’s creative collective LoveFrom began informal explorations with OpenAI teams on “friendship, curiosity and shared values” before evolving into tangible product concepts.
“This is an extraordinary moment,” the OpenAI press release reads. “Computers are now seeing, thinking and understanding. Despite this unprecedented capability, our experience remains shaped by traditional products and interfaces.” With io now merging into OpenAI, Ive and his LoveFrom studio will assume “deep design and creative responsibilities” across both organizations, ensuring new hardware offerings maintain the human-centered ethos for which LoveFrom is known.
Why It Matters
By bringing its own hardware division in-house, OpenAI joins peers like Google and Meta in pursuing vertical integration that spans research, software, and physical devices. Industry analysts suggest this move positions OpenAI to compete not only with established cloud-based AI offerings but also with consumer electronics giants. Gartner forecasts global generative-AI spending will reach $644 billion in 2025, underscoring the commercial potential of AI-enabled hardware.
Deal Mechanics and Timeline
The acquisition is slated to close this summer, contingent on regulatory approval. Upon completion, io’s 55 employees will integrate into a new hardware division led by former io executive Peter Welinder. Despite the merger, LoveFrom will remain an independent consultancy and continue pursuing external clients while collaborating closely with OpenAI on product design.
Leadership Reactions
OpenAI CEO Sam Altman expressed enthusiasm on social media: “Thrilled to be partnering with Jony, IMO the greatest designer in the world. Excited to try to create a new generation of AI-powered computers,” he wrote on X (formerly Twitter). Ive, reflecting on his three-decade design journey, stated, “I have a growing sense that everything I have learned over the last 30 years has led me to this moment… I am so grateful for the opportunity to be part of such an important collaboration”.
Looking Ahead
OpenAI and Ive plan to unveil the first jointly designed products in 2026, aiming to redefine user interfaces for AI via voice, vision, and gesture controls optimized by bespoke hardware. As AI models grow ever more capable, the fusion of cutting-edge software with world-class industrial design could spark a new era of devices that feel intuitive, empowering, and delightful to use.
Read the announcement here.
