OpenAI Acquires Jony Ive’s io Products in $6.5 Billion Deal to Lead New AI Hardware Venture

OpenAI has brought on Jony Ive, the legendary designer behind Apple’s iPhone, to lead a new hardware initiative. The AI company, known for ChatGPT, is acquiring io Products—a product and engineering firm co-founded by Ive—in a deal valued at nearly $6.5 billion.
Ive, famous for his influential design work during a 27-year tenure at Apple, particularly after Steve Jobs’ return in 1997, helped create iconic products like the iPhone. This new partnership positions Ive at the forefront of AI innovation, which is seen as a transformative technology on par with the iPhone’s impact.
While OpenAI hasn’t revealed the exact products planned, analysts suggest the focus could be on “physical AI embodiments,” such as AI-powered robots, cars, or smart glasses—similar to projects by Google and Meta. OpenAI CEO Sam Altman has been quietly working with Ive and his design firm, LoveFrom, since 2023. The two announced in a joint letter that their ambitions required forming a new company, leading to the creation of io, incorporated in Delaware in 2023 and California in 2024.
OpenAI already owned 23% of io and will now acquire it fully, paying $5 billion in equity. Ive won’t become an OpenAI employee, and LoveFrom remains independent but will take on major design responsibilities for both OpenAI and io. The new io division will be led by Peter Welinder, a longtime OpenAI executive with a background in robotics and new product research.
OpenAI, founded nearly a decade ago as a nonprofit focused on safe AI, is evolving toward commercialization under Altman’s leadership, who recently confirmed plans to adjust its governance to better support growth and acquisitions.