The designer behind the iPhone is now shaping OpenAI’s future.
In a $6.4 billion equity deal, OpenAI has acquired the startup io, the hardware venture led by legendary Apple designer Jony Ive. The mastermind behind the iPhone and MacBook, Ive will not join OpenAI as an employee, but his team will assume a creative role within the company, shaping the look and feel of future AI-powered hardware. His design consultancy, LoveFrom, will remain independent.
The deal, entirely funded through equity, is OpenAI’s largest acquisition to date and represents a notable shift from its prior focus on partnerships and software licensing. It allows the tech giant to gain full control over the design and development of dedicated AI-native devices.
“Thrilled to be partnering with Jony, in my opinion the greatest designer in the world,” OpenAI CEO Sam Altman posted on X. “Excited to try to create a new generation of AI-powered computers.”
OpenAI’s strategic shift into hardware
According to Axios, the move will bring all 55 io employees into OpenAI, where they will form a new hardware division under VP of Product Peter Welinder. The unit will be based in San Francisco and work closely with OpenAI’s research and engineering teams.
OpenAI and Ive have not disclosed specific product plans; however, the acquisition is expected to result in a device that reimagines how people interact with AI. Reports suggest the first product — potentially launching as early as 2026 — could move away from the traditional smartphone format and instead feature a voice-forward, always-on interface powered by OpenAI’s large language models.
High stakes, big competition
The deal, announced in an OpenAI blog post, lands at a critical moment in the AI hardware race.
Apple recently revealed plans to integrate ChatGPT into its Siri assistant, and startups like Rabbit are already exploring AI-first gadgets. OpenAI’s massive investment in Ive and io indicates a clear intention to lead in this emerging space — and to shape how people experience AI in their daily lives.
Wall Street reacted swiftly: Apple shares dipped nearly 2% following the announcement, reflecting market anxiety over new competition in the consumer AI space.
The market’s reaction underscores just how seriously investors are taking OpenAI’s hardware ambitions and the potential for Ive to once again help reshape an entire industry.