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OpenAI Acquires Jony Ive’s AI Device Startup in $6.5B Hardware Push

Ive, best known for designing Apple’s iPhone, iMac, and iPad, will take on deep creative and design responsibilities at OpenAI
OpenAI Acquires Jony Ive’s AI Device Startup in $6.5B Hardware Push

Big move in the AI hardware space! OpenAI has acquired io, the AI device startup co-founded by legendary Apple designer Jony Ive, in a $6.5 billion all-stock deal. This marks OpenAI’s largest acquisition to date, signaling a shift beyond software into consumer hardware.

Ive, best known for designing Apple’s iPhone, iMac, and iPad, will take on deep creative and design responsibilities at OpenAI while continuing to lead his design studio, LoveFrom. The acquisition consolidates OpenAI’s previous 23% stake in io, with the remaining $5 billion paid in equity.

The goal? To develop AI-native devices that rethink human interaction with technology—potentially moving beyond traditional screens. The first product could arrive in 2026, with industry speculation pointing to a next-gen AI-powered assistant or wearable.

This positions OpenAI to compete directly with Apple, Google, and xAI, all racing to integrate AI into consumer devices.

To recall, in September 2023 IndianWeb2.com reported that OpenAI is in advanced talks with former Apple designer Sir Jony Ive and SoftBank’s Masayoshi Son to launch a venture to build the “iPhone of artificial intelligence", with over $1 billion financials from the Softbank.

This acquisition puts OpenAI in direct competition with Apple and Google in the AI hardware space, potentially disrupting their dominance in consumer tech. OpenAI’s move into AI-native devices could threaten Apple’s grip on premium consumer hardware.

Jony Ive, the mastermind behind Apple’s most iconic designs, is now shaping OpenAI’s hardware vision, which could lure Apple loyalists. Apple has been slow to integrate AI deeply into its devices, and OpenAI’s new product could highlight that gap.

Google has been embedding AI into its Pixel devices and Android ecosystem, but OpenAI’s approach focuses on screenless, voice-first interaction.

If OpenAI’s device succeeds, it could reduce reliance on Google’s AI-powered search and assistant technologies. OpenAI’s timing—announcing this acquisition during Google I/O—suggests a strategic move to steal the spotlight.

OpenAI is betting on ambient computing, where AI operates seamlessly in the background without traditional screens. This could create a new category of devices, rather than competing directly with smartphones or smartwatches. If successful, OpenAI could set the standard for AI-first hardware, forcing Apple and Google to rethink their strategies.

Apple and Google will likely respond by accelerating their AI hardware efforts. Apple may push deeper AI integration into iPhones, while Google could refine its AI assistant and wearables. OpenAI’s success will depend on whether it can deliver a compelling, intuitive AI experience that feels indispensable.

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