OpenAI has announced that it is acquiring “io,” the AI device startup launched by iPhone’s legendary designer Jony Ive, for a whopping $6.4 billion in an all-equity deal. This massive acquisition includes OpenAI’s existing 23% stake in the company.

According to OpenAI,

“io is merging with OpenAI”, allowing Ive and his world-class design studio “LoveFrom” to remain independent. However, Ive will now take on “deep creative and design responsibilities across OpenAI and io.”

Meet “io”,  The Dream Team Behind the Vision

In a joint blog post on Wednesday, OpenAI CEO Sam Altman and Jony Ive shared that “io was founded a year ago by Ive,” in partnership with fellow Apple veterans: Scott Cannon, Tang Tan, and Evans Hankey (who briefly took over Ive’s role at Apple after his departure).

They wrote, The io team, focused on developing products that inspire, empower and enable, will now merge with OpenAI to work more intimately with the research, engineering and product teams in San Francisco. Out of the total $6.4 billion valuation, OpenAI is directly paying $5 billion, since it already owned nearly a quarter of io. This acquisition follows OpenAI’s recent buying spree, which includes the AI-assisted coding tool Windsurf (purchased for $3 billion) and analytics database company Rockset, acquired earlier in 2024 for an undisclosed amount.

Jony Ive’s Legacy and LoveFrom’s High-Profile Design Power

Ever since forming LoveFrom in 2019, Jony Ive has been working on his new venture after leaving Apple. He was with the company during pivotal moments when they shaped some of the most valuable products in the world such as the MacBook Air, iPhone, iPad, and iPod. Since then, reports indicate that LoveFrom generates revenues upwards of $200 million supporting the sophisticated clients they have worked with such as Airbnb, Christie’s, and Ferrari.

Although LoveFrom’s official website doesn’t mention it, it does confirm that it was founded by Ive and world-renowned designer Marc Newson. One of Ive’s major achievements at Apple also includes helping design the company’s stunning Cupertino headquarters, Apple Park, which officially opened in 2019 after years of development beginning in 2004.

OpenAI’s Bold Leap Toward AI Hardware Dominance

OpenAI has been quietly building up its hardware team, and one major step was hiring Caitlin “CK” Kalinowski, who used to lead Meta’s AR glasses project. Caitlin said she’ll focus on OpenAI’s robotics and hardware partnerships to help bring AI into the real world in useful and meaningful ways. OpenAI also invested in a robotics startup called Physical Intelligence, based in San Francisco. The company raised $400 million and is now valued at $2.4 billion.

Amazon founder Jeff Bezos is also backing the startup, which aims to create general-purpose robots powered by advanced AI models. Now, with Jony Ive’s world-class design talent joining forces with OpenAI’s cutting-edge AI, they’re set to build a new wave of smart devices that could completely change how we interact with technology.