OpenAI Acquires Former Apple Designer Chief’s Company

OpenAI is acquiring io, a secretive hardware startup co-founded by its CEO Sam Altman and former Apple design chief Jony Ive, in an all-equity deal that values the company at $6.5 billion, according to The Wall Street Journal. The acquisition, announced Wednesday, also formalizes a deeper partnership between OpenAI and Ive’s design firm, LoveFrom, which will now lead creative and design efforts at OpenAI.

This comes as OpenAI expands its reach beyond software and into consumer hardware, further positioning itself as a competitor in the artificial intelligence (AI) technology landscape.

“Thrilled to be partnering with Jony, [in my opinion] the greatest designer in the world,” said Altman in a post on X. “Excited to try to create a new generation of AI-powered computers,” He added.

The move puts Ive—known for his work on Apple’s most iconic devices, including the iPhone, iPad, and Apple Watch—at the forefront of the generative AI revolution. Under the agreement, all 55 employees of io, including former Apple engineers and designers, will join OpenAI.

Moreover, OpenAI is strengthening its consumer offerings. Earlier this month, it appointed former Meta executive and Instacart CEO Fidji Simo to oversee its consumer applications. Meanwhile, the addition of Ive signals the company’s commitment to reshaping the physical interfaces through which people interact with AI.

According to Bloomberg, the first devices from the Altman-Ive collaboration are expected to launch in 2026. These products are reportedly designed to move consumers “beyond screens,” though specific details remain under wraps. The Wall Street Journal adds that Ive will also contribute to future versions of ChatGPT and other AI interfaces.

Meanwhile, LoveFrom will continue to operate independently, despite its new collaboration with OpenAI. The acquisition has already had ripple effects, as Apple’s stock declined by 2 percent on Wednesday following the announcement, amid speculation that OpenAI’s hardware ambitions could challenge the iPhone maker’s current trajectory in AI. (GFB)