OpenAI to Acquire Io, Plans Consumer AI Hardware Push
- By John K. Waters
- 06/03/25
OpenAI has announced plans to acquire io, an artificial intelligence hardware startup co-founded by former Apple design chief Jony Ive, in an all-stock transaction valued at nearly $6.5 billion. The deal, OpenAI's largest to date, is aimed at creating a dedicated division for the development of AI-powered consumer devices.
The acquisition will bring to OpenAI a team of approximately 55 hardware engineers, software developers, and manufacturing specialists. The io team includes several high-profile former Apple employees who played key roles in designing landmark products such as the iPhone, iPad, and MacBook.
"Two years ago, Jony Ive and the creative collective LoveFrom, quietly began collaborating with Sam Altman and the team at OpenAI," the company said in a statement. "A collaboration built upon friendship, curiosity and shared values quickly grew in ambition. Tentative ideas and explorations evolved into tangible designs."
"What it means to use technology can change in a profound way," Altman said. "I hope we can bring some of the delight, wonder and creative spirit that I first felt using an Apple Computer 30 years ago."
OpenAI, which developed the ChatGPT chatbot and now holds a valuation of approximately $300 billion, initially acquired a 23% stake in io through a partnership formed in late 2024. That arrangement also included investment from OpenAI's startup fund. Other investors in io include Emerson Collective, Sutter Hill Ventures, Thrive Capital, Maverick Ventures, and SV Angel. OpenAI clarified that Altman holds no equity in io.
The acquisition is expected to close this summer, subject to regulatory approval. Post-acquisition, io will continue to operate from its San Francisco headquarters and will collaborate closely with OpenAI's existing product teams. The effort will be led by OpenAI Vice President of Product Peter Welinder, who will oversee development of the new hardware lineup.
"I have a growing sense that everything I have learned over the last 30 years has led me to this moment," Ive said. "While I am both anxious and excited about the responsibility of the substantial work ahead, I am so grateful for the opportunity to be part of such an important collaboration. The values and vision of Sam and the teams at OpenAI and io are a rare inspiration."
Ive and Altman have reportedly been exploring product concepts together for the past two years. The initial output of their collaboration is projected for release in 2026. While specific product details remain undisclosed, the partnership is expected to focus on novel computing form factors optimized for AI-first interaction, distinct from traditional smartphones or laptops.
Ive's design firm LoveFrom will remain an independent entity but will assume responsibility for the design of OpenAI's software and hardware products. The firm includes several designers who previously contributed to Apple's hardware and user interface aesthetics. LoveFrom will maintain existing relationships with clients such as Ferrari NV and Airbnb Inc., but will not engage in new large-scale partnerships.
The partnership between OpenAI and io marks a strategic expansion into what industry analysts describe as "physical AI" — the integration of artificial intelligence into consumer devices capable of sensing and responding to real-world environments. Competing firms such as Meta Platforms Inc. and Humane have also entered this space, though recent AI hardware launches have received mixed reviews.
About the Author
John K. Waters is the editor in chief of a number of Converge360.com sites, with a focus on high-end development, AI and future tech. He's been writing about cutting-edge technologies and culture of Silicon Valley for more than two decades, and he's written more than a dozen books. He also co-scripted the documentary film Silicon Valley: A 100 Year Renaissance, which aired on PBS. He can be reached at [email protected].