OpenAI just announced it’s shelling out $6.5 billion to acquire Io, a super-secret AI startup founded by design legend Jony Ive. Reported first by Bloomberg’s Mark Gurman, this is the biggest deal in OpenAI’s history—and a clear sign the company isn’t stopping at software.
Beyond boosting their AI R&D, OpenAI is pairing up with former Apple design stars to dream up sleek, user-friendly gadgets powered by ChatGPT and next-gen models. Get ready for an entirely new class of devices built from the ground up with intelligence in mind.
OpenAI’s Massive $6.5 Billion Acquisition
Spending $6.5 billion on a tiny, hush-hush startup might sound wild, but OpenAI sees it as a strategic play to own the entire AI stack from chips to user experience. Io, until now operating in near-total secrecy, was the brainchild of Jony Ive—fresh off designing Apple’s most iconic products.
This deal doesn’t just strengthen OpenAI’s balance sheet; it cements their commitment to hardware. By folding Io’s expertise into their team, they’re betting that tightly integrated design and AI can outperform any off-the-shelf device out there.
Joining Forces with Design Legend Jony Ive
Jony Ive saying he’s ready for “the biggest chapter” of his career alongside Sam Altman is no small hype. When the man who shaped the iPhone and MacBook turns his attention to AI hardware, the industry sits up and takes notice. Expect sleek silhouettes and intuitive interfaces that put AI front and center.
Beyond Ive, several other ex-Apple designers are on board, meaning form and function will be as critical as the processors under the hood. OpenAI wants that same cultural frenzy that greeted the iPhone launch—only now it’s powered by generative AI.
Imagining AI-Driven Devices
Rumors are swirling about an AI smartphone with no traditional touchscreen, fueled entirely by ChatGPT and voice or gesture input. While details are sketchy, the vision is clear: devices that anticipate your needs and converse naturally, all while looking like modern art.
But it’s not just phones. Think wearables, home assistants, and office gadgets that learn your habits and streamline your day. With Io’s design chops and OpenAI’s software prowess, these concepts could shift from sci-fi dreams to real products sooner than we think.
Bold Promises and High Expectations
Sam Altman himself claims we’ll see hardware “of a quality that’s never before been reached in consumer tech.” That’s a tall order in a market dominated by Apple, Samsung, and Google. Still, pairing cutting-edge AI with fresh industrial design could be a game-changer.
On the design side, Ive insists everything he’s learned over three decades has led him to this moment. The promise? “Products, products, and more products,” all aimed at harnessing AI’s potential in brand-new form factors.
Looking Ahead: What’s Next for OpenAI Hardware
The Io deal is expected to close by summer, pending regulatory approval. Once that’s in the bag, OpenAI will kick off rapid prototyping, blending Io’s industrial design lab with OpenAI’s research teams. Early sketches might turn into functional prototypes within months.
For consumers, this means keeping an eye out for teaser videos, beta programs, and maybe a splashy launch event. If OpenAI hits its stride, we could soon be living in a world where AI isn’t just an app but woven seamlessly into the devices we hold, wear, and carry every day.
