OpenAI has announced a major strategic move to accelerate its expansion into hardware, with the acquisition of io, the San Francisco-based tech start-up founded by Sir Jony Ive, the former chief design officer at Apple.
The merger, valued at $6.5 billion (£4.8 billion), will bring together Ive’s team of engineers, product developers and designers under the OpenAI umbrella.
The deal marks a significant turning point in OpenAI’s ambitions beyond software and chatbots, as it looks to develop next-generation AI-powered consumer hardware that could redefine the way users interact with technology.
Founded by Sam Altman, Elon Musk, and others in 2015, OpenAI gained global attention following the release of ChatGPT in 2022, triggering a wave of interest and investment in generative AI. With the integration of Ive’s design-focused start-up, OpenAI is now positioning itself to tackle the hardware frontier, blending its cutting-edge AI models with world-class product design.
Ive, 58, who famously led the design of the iMac, iPhone, iPad and Apple Watch, co-founded io last year after a longstanding collaboration with Altman through his design firm LoveFrom. He described the merger as the culmination of decades of creative experience.
“I have a growing sense that everything I have learnt 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.”
Under the new arrangement, io will be folded into OpenAI, and LoveFrom will assume creative and design responsibilities across both organisations. The combined team will work from San Francisco, focusing on research, engineering and product development.
The move represents a significant milestone in the evolution of OpenAI, which has recently faced scrutiny over governance and its corporate mission. Earlier this month, the company confirmed it would pause its plans to shift fully to a “for-profit” model, following criticism from former employees and tech leaders, including Elon Musk.
Altman said the merger with io reflects a shared commitment to reshaping how people experience technology.
“What it means to use technology can change in a profound way,” he 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.”
The $6.5 billion valuation reported by Reuters underscores both the strategic importance of the partnership and the value that OpenAI places on Ive’s legacy and future vision. With the lines between software and hardware continuing to blur, the collaboration could place OpenAI at the forefront of a new era of AI-native devices — designed not just for function, but for human experience.
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Sir Jony Ive’s tech start-up to merge with OpenAI in $6.5bn deal