OpenAI buys Jony Ive’s hardware startup io for $6.5 billion

In a major move blending cutting-edge AI with elite design pedigree, OpenAI has acquired io, the startup founded by renowned former Apple designer Jony Ive, for a reported $6.5 billion. OpenAI confirmed the acquisition in a blog post on Wednesday, featuring a real (not AI-generated) photo at the top of the announcement.

A New Era of Design Meets AI

Founded by Jony Ive alongside former Apple collaborators Scott Cannon, Evans Hankey, and Tang Tan, io has operated somewhat under the radar — until now. With this acquisition, OpenAI is making a bold bet on integrating world-class industrial and product design talent into the future of artificial intelligence hardware and experiences.

As part of the deal:

• Jony Ive and his design firm LoveFrom will remain independent from OpenAI.
• Co-founders Cannon, Hankey, and Tan will join OpenAI as full-time employees.

This structure preserves Ive’s creative independence while embedding some of Apple’s top design minds within OpenAI's ecosystem.

The Bigger Picture: AI Hardware in the Works?

While specific details about io’s products remain unclear, the acquisition reinforces rumors that OpenAI is eyeing hardware development — possibly in collaboration with Ive’s design sensibilities. The pairing could lead to devices or platforms that merge sophisticated design with OpenAI’s advanced language models.

Ive, who famously led the design of the iPhone, iPad, and MacBook, left Apple in 2019 to form LoveFrom. Since then, he has worked on a variety of projects, including collaborations with Airbnb and Ferrari.

Financial Questions Remain

OpenAI has not disclosed whether the $6.5 billion price will be paid in cash or stock. The company, despite its massive valuation and influence, has yet to turn a profit. Its operations are significantly funded by Microsoft, which has invested over $13 billion into OpenAI. As part of that deal, OpenAI shares 20% of its revenue with Microsoft through 2030, according to The Information.

Strategic Implications

The acquisition of io signals OpenAI's ambition to move beyond software. With Apple veterans now on board, the company could be laying the groundwork for AI-first consumer hardware — perhaps an AI assistant device, wearable, or some form of next-gen computing interface.

It also marks a broader trend in tech: design and user experience are becoming just as critical in AI development as algorithmic breakthroughs. As AI moves from research labs to everyday life, how it looks, feels, and integrates into daily use will define its success — and that’s where Jony Ive’s legacy fits perfectly into OpenAI’s future.