OpenAI has confirmed the acquisition of io, a hardware startup co-founded by former Apple design chief Jony Ive, in a deal valued at $6.5 billion. This move marks a major shift for OpenAI as it transitions from a software-focused company to one with ambitions in the consumer hardware space.
Jony Ive, best known for his design work on the iPhone, iMac, and Apple Watch, launched io in 2023 with OpenAI CEO Sam Altman. The startup’s mission has been to develop AI-native hardware that transforms how people interact with technology. One of their first products is a compact, screenless wearable device. Designed to be worn around the neck, the gadget uses cameras and microphones to detect the environment and seamlessly interface with users’ smartphones and computers. It is expected to enter mass production by 2027, with Vietnam likely to serve as the manufacturing base.
The acquisition brings io’s entire 55-person team under OpenAI’s umbrella, significantly boosting its design and engineering capabilities. While Ive will not become a direct OpenAI employee, his design company, LoveFrom, will remain independent and continue to lead the design direction for OpenAI’s future hardware products.
This collaboration reflects OpenAI’s growing ambition to compete with established tech giants by blending cutting-edge AI with world-class design. The company aims to create consumer devices that feel intuitive and natural to use, moving beyond traditional screens and keyboards. The focus is on building a new category of products that make AI more accessible and seamlessly integrated into daily life.
Despite the bold vision, some industry experts remain cautious. They argue that the integration of AI into hardware may lead to gradual improvements in user experience rather than a dramatic technological leap. Nonetheless, OpenAI’s investment in design and hardware is seen as a sign that the company is preparing for a future where AI is embedded in everything from wearables to smart home devices.
In summary, OpenAI’s acquisition of io signals a significant expansion of its vision. By bringing together deep AI expertise and iconic product design, OpenAI is positioning itself to shape the future of intelligent hardware in a way that could rival the influence of today’s biggest tech companies.
