According to a CNBC report, Openai announced on May 21 that it will acquire Jony Ive’s artificial intelligence hardware startup IO at a value of around $6.4 billion.
This acquisition of Openai’s biggest shows the critical step into the hardware of a company best known for its generative AI model. This transaction incorporates IO directly into Openai.
Meanwhile, former Apple design chief Ive will retain his independence of his design company Lovefrom.
ive is said to have designed iPhones, iPads and other major Apple products. He assumes design and creative responsibilities across Openai and IO.
Integration into AI and product teams
In a joint statement, Openai CEOs Sam Altman and Ive said the IO team will move to San Francisco to work closely with Openai’s research and product team.
The IO startup was founded a year ago by Ive and former Apple colleagues Scott Cannon, Tang Tan and Evans Hankey, and previously operated as part of Lovefrom.
Openai currently owns a 23% stake in IO, and has donated $1.4 billion to the valuation of the transaction. The remaining $5 billion will be transferred in stock.
The transaction brings IO’s device-centric team in-house, adding industrial design capabilities to OpenAI’s portfolio. In a statement shared on X, Altman described Ive as “the greatest designer in the world.”
The deal comes just weeks after Openai agreed to acquire Windsurf, the AI ​​coding assistant, for $3 billion.
Hardware Investment
In addition to its internal efforts, Openai is investing in Physical Intelligence, a San Francisco-based robotics startup that raised $400 million in 2024 at a valuation of $2.4 billion.
The round included participation from Amazon founder Jeff Bezos. Physical intelligence suggests Openai’s broader intention to build generic AI that operates in physical environments and pair software with haptic systems.
The acquisition of IO will strengthen that direction. Although Openai did not disclose any particular products, the blog post referred to devices that “inspire, empower, and enable” and highlighted IO’s mission to convert AI capabilities into consumer-oriented form factors.
Openai’s IO purchase highlights strategies to build a physical interface for the model as the competitive field of AI generated by Google, humanity and Xai entries continues to expand.
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