OpenAI has acquired hardware startup ioco-founded by former Apple design chief Sir Jony Ive and OpenAI CEO Sam Altman, in a $6.4 billion all-equity deal. The acquisition is a strategic move by OpenAI to expand beyond software and smartphones, aiming to build next-generation devices optimized for an AI-first world. OpenAI, which already owned 23% of io, paid $5 billion in equity to purchase the remaining 77%. All 55 employees of io will join OpenAI, though Jony Ive will not become an employee; instead, he will serve as a consultant while continuing to lead his design studio, LoveFrom.
OpenAI and io: Reimagining Hardware for the AGI Era
Founded in 2023, io is focused on creating hardware designed from the ground up for artificial intelligence, rather than treating AI as a feature. The team, made up of former Apple designers and engineers, aims to redefine how users interact with technology by placing AI at the center of the hardware experience.
OpenAI described this acquisition as a pivotal move toward developing a family of devices for the AGI (artificial general intelligence) era—a future where AI matches or surpasses human intelligence. CEO Sam Altman stated, “We have the opportunity here to completely reimagine what it means to use a computer.” While specific hardware details remain under wraps, insiders have hinted that io is working on a product radically different from smartphones—something described as “a completely new surface.”
Jony Ive to Shape OpenAI’s Vision for AGI-Era Devices
Jony Ive, known for designing the iPhone, iPod, MacBook, and Apple Watch, will lead the creative and design efforts for OpenAI’s future hardware products. His involvement signals a significant step in redefining how users might engage with AI, not just through software but through elegant and intuitive devices crafted specifically for AGI.
This move comes amid OpenAI’s growing presence in the consumer tech space, including its partnership with Apple, which integrated ChatGPT into Siri as part of the broader “Apple Intelligence” initiative.
Summary:
OpenAI acquired hardware startup io for $6.4 billion to create AI-first devices beyond smartphones. Co-founded by Jony Ive and Sam Altman, io focuses on AGI-optimized hardware. Ive will consult on design while leading LoveFrom. The move aligns with OpenAI’s push into consumer tech alongside its partnership with Apple.
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