OpenAI just dropped some major news that’s got the tech world buzzing. The company behind ChatGPT has acquired io, a secretive AI device startup co-founded by none other than Jony Ive – the legendary designer who gave us the iPhone, iMac, and countless other Apple classics. The deal? A whopping $6.5 billion, making it OpenAI’s biggest acquisition ever.
This isn’t just about money changing hands. It’s OpenAI’s ambitious leap into hardware, signaling they’re serious about creating physical AI devices that could change how we interact with technology every day.
Who’s Behind This Deal?
Jony Ive needs little introduction. For 27 years at Apple, he was the creative genius behind some of the most iconic tech products ever made.
When he left Apple in 2019 to start his own design firm called LoveFrom, people wondered what he’d do next. Well, now we know. About a year ago, he quietly launched io, a product and engineering company focused on developing innovative AI hardware.
The acquisition structure is pretty interesting. OpenAI is paying $5 billion in stock on top of the 23% stake they already owned in IO. That brings the total value to nearly $6.5 billion. About 55 employees from io will join OpenAI to form a dedicated hardware division, with Peter Welinder leading the charge.
Meanwhile, Ive and his team will take on major design and creative responsibilities across both companies, though his LoveFrom firm will stay independent.
What Are They Actually Building?
Here’s where things get really intriguing. Neither company has spilled the beans on exactly what they’re creating, but we know it’s going to be “a new family of products” that bring generative AI into physical form moving way beyond traditional screens and interfaces.
Industry analysts, including the well-connected Ming-Chi Kuo, are speculating that the first device might be something like a neck-worn, screenless gadget. Think iPod Shuffle meets AI assistant. It would reportedly have cameras and microphones to understand your environment and connect to your smartphone or PC for processing power and display.
What’s particularly fascinating is what this device won’t be. OpenAI CEO Sam Altman has been clear: it’s not glasses, it’s not a smartphone, and it’s not a traditional wearable. Instead, they’re aiming to create what he calls a “third core device” for daily life something that sits alongside your laptop and phone but focuses on reducing our dependency on screens.
The Bigger Picture
The timing here is everything. Both Altman and Ive have been vocal about wanting to rethink how computing fits into our lives, especially addressing the social disruption caused by smartphones. They’re not just building another gadget – they’re trying to solve some of the problems our current technology has created.
The ambition is massive too. Altman believes this device could reach 100 million units faster than any previous new product, potentially adding $1 trillion to OpenAI’s valuation. That’s iPhone-level confidence right there.
When Can We Expect to See It?
Don’t hold your breath just yet. The first products from this collaboration are expected to be unveiled in 2026, with mass production planned for 2027. That might seem far off, but given the complexity of what they’re trying to achieve essentially reinventing how we interact with AI it makes sense they’re taking their time.
This acquisition puts both Jony Ive and OpenAI at the forefront of what could be the next major wave in technology.
Just like the iPhone transformed mobile computing, they’re betting that AI-powered hardware will fundamentally change how we live and work with technology. Whether they can pull it off remains to be seen, but with $6.5 billion on the table and Ive’s track record, it’s certainly worth watching.
