OpenAI has announced its acquisition of io, the AI hardware startup founded by legendary designer Jony Ive, in a record-breaking $6.4 billion deal, marking the largest acquisition in OpenAI’s history.
As part of the deal, around 55 engineers, designers, and product experts from io will join OpenAI. The company will fully merge io into its operations, while Ive’s independent creative firm LoveFrom will lead product and design strategy for both OpenAI and io.
According to OpenAI, Ive will take on deep creative and design responsibilities, while LoveFrom continues to serve other high-profile clients like Ferrari, Airbnb, and Christie’s.
Given OpenAI already owned 23% of io, it will pay only $5 billion in cash for the acquisition.
The goal, according to OpenAI CEO Sam Altman, is to fuse world-class design with cutting-edge AI to build a new class of consumer devices. “We’re excited to try to create a new generation of AI-powered computers that empower users,” said Altman.
The first product launch is expected in 2026, with both Altman and Ive describing it as a radical new interface for AI, going beyond screens and keyboards.
This acquisition follows OpenAI’s recent purchase of AI coding tool Windsurf for $3 billion, and a separate deal for the database company Rockset, signaling an aggressive hardware expansion strategy.
