Everything we know about OpenAI’s $6.5 billion purchase of Jony Ive’s Io

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OpenAI’s Sam Altman called Ive, who designed several Apple products, the “greatest designer in the world.”

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Key facts
  • Altman and Ive announced OpenAI’s acquisition of Ive’s io in a statement Wednesday, with the deal valued at roughly $6.5 billion after OpenAI acquired 23% of io in a partnership deal in 2024.
  • Ive won’t join OpenAI’s staff as part of the deal and his design firm LoveFrom will continue to operate independently, Bloomberg reported, though LoveFrom will “take over design for all of OpenAI, including its software,” as about 55 hardware engineers, software developers and manufacturing experts join OpenAI from io.
What to watch for

The first device by Ive and Altman is expected to debut in 2026, they told Bloomberg.

Who is Jony Ive?

Ive joined Apple in 1992 and as head of design helped create the company’s most iconic products—including the iMac in 1998, the iPod in 2001, the iPhone in 2007, the iPad in 2010 and the Apple Watch. After Ive announced in 2019 he would leave the company to debut his design firm, LoveFrom, Apple CEO Tim Cook applauded his tenure, saying Ive’s “role in Apple’s revival [in the 1990s]” could not be overstated.

Everything we know about OpenAI’s plans for AI devices

Altman told OpenAI employees Wednesday he and Ive planned to release AI “companions,” according to a recording obtained by The Wall Street Journal. The pair signaled the device would be aware of a user’s surroundings and life, could be placed in a pocket or on a desk and be featured alongside products like a MacBook Pro or iPhone, and the Journal previously reported Altman planned to create a device without a screen.

Ive and Altman also indicated their device wouldn’t be a new phone or something that could be worn, after earlier reports of their collaboration suggested they explored developing headphones, the “iPhone of artificial intelligence” and other devices with cameras.

Jonathan Ive, the British-born designer who formerly led Apple’s industrial design team, at Apple Headquarters, Cupertino, California (Photo Paul Harris/Getty Images)

They told Bloomberg their new device would allow consumers to connect with AI in “very new ways,” as Altman suggested their first product won’t “make the smartphone go away” and be a “totally new kind of thing.” The pair may also design new computers: Altman, who called Ive the “greatest designer in the world,” wrote on X he was “excited to try and create a new generation of AI-powered computers.”

Apple shares down in 2025 as it faces AI challenges

Apple, whose shares have declined more than 17% in 2025, advertised the release of its iPhone 16 last year with details about the company’s new “Apple Intelligence.”

The company announced earlier this year it would delay the new AI features to 2026, after it disabled Apple Intelligence summaries for news apps when some users discovered the company’s AI system inaccurately displayed story facts. Apple was sued in March by consumers alleging the company falsely advertised its AI features, with “a clear and reasonable consumer expectation” that AI would be available at the iPhone’s release, according to a filing in the U.S. District Court in San Jose (Apple did not immediately respond to a request for comment from Forbes).

Ive has reportedly expressed interest in developing an AI device for years, telling Bloomberg early AI devices like the Human Ai Pin are “very poor products.” Ive co-founded io in September 2023, as it “became clear that our ambitions to develop, engineer and manufacture a new family of products demanded an entirely new company,” Ive and Altman wrote.

Ive reportedly planned to build and sell an AI device with io using OpenAI’s technology before Altman pushed for their companies to combine.

OpenAI CEO Sam Altman speaks during the Microsoft Build conference at the Seattle Convention Center Summit Building in Seattle, Washington on May 21, 2024. (Photo by Jason Redmond / AFP) (Photo by JASON REDMOND/AFP via Getty Images)
Key background

OpenAI’s talks to acquire io were first reported in March. The companies were said to be developing a device that would include technology from the movie “Her,” a 2013 film in which the main character develops a relationship with a voice AI companion.

OpenAI and io agreed to a partnership last year that involved OpenAI acquiring a 23% stake in the company, according to Bloomberg.

The acquisition is the latest by OpenAI in the company’s apparent push to release physical devices, following the release of its popular AI chatbot ChatGPT in 2022, after the company hired the former head of Meta’s augmented reality glasses project in November. That same month, OpenAI reportedly invested in the robot startup Physical Intelligence.

This article was originally published on forbes.com and all figures are in USD.

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