OpenAI Acquires Jony Ive’s AI Device Startup in $6.4 Billion Bet on Human-Centered Hardware

preCharge News BUSINESS — OpenAI has acquired io, the artificial intelligence hardware startup founded by legendary Apple designer Jony Ive, in an all-stock deal valued at $6.4 billion, the company announced Wednesday. The acquisition, which also includes OpenAI’s existing stake in io, marks its largest deal to date—and a bold move toward building consumer-facing AI devices.

In a joint blog post, OpenAI CEO Sam Altman and Ive emphasized that io will merge directly with OpenAI, giving its engineering and product teams in San Francisco direct access to design innovation developed under Ive’s leadership.

“The io team, focused on developing products that inspire, empower, and enable, will now merge with OpenAI,” the post read.

Jony Ive Returns to Center Stage in AI Era

Ive, who famously led the design of Apple’s most iconic devices—the iPod, iPhone, iPad, and MacBook Air—left Apple in 2019 to create his design firm LoveFrom. Although LoveFrom will remain independent, Ive will now take on “deep creative and design responsibilities across OpenAI and io,” the company said.

Io was founded just a year ago by Ive and former Apple colleagues Scott Cannon, Tang Tan, and Evans Hankey, the latter of whom briefly succeeded Ive at Apple before departing. The startup’s swift rise reflects growing demand for hardware that bridges AI software with real-world utility.

OpenAI’s goal is clear: marry breakthrough AI models with groundbreaking design—a synergy it believes is essential to bring generative intelligence into the hands of everyday consumers.

OpenAI’s Hardware Push Accelerates in a Crowded Field

This acquisition follows OpenAI’s purchase of Windsurf, an AI-assisted coding platform, for $3 billion earlier this year. It also recently snapped up Rockset, a real-time analytics database startup. These moves underscore OpenAI’s urgent mission to diversify beyond software and take the fight to Google, Anthropic, and Elon Musk’s xAI.

In November, OpenAI hired Caitlin “CK” Kalinowski, the former head of Meta’s Orion AR glasses initiative, to lead robotics and consumer hardware. She’s now tasked with integrating AI into physical products—starting with robotics—and forging partnerships to unlock “AI’s benefits for humanity.”

Altman’s team has also invested in Physical Intelligence, a robotics startup that raised $400 million at a $2.4 billion valuation. With backing from Jeff Bezos, Thrive Capital, and Bond Capital, the company aims to bring general-purpose AI into the physical world, according to its site.

Why This Deal Matters: The Future of AI Is Tangible

OpenAI is positioning this merger as a critical step toward embedding AI into everyday life, not just through apps or chatbots, but through objects designed to interact seamlessly with the human experience. With the rise of ambient computing, the lines between software, hardware, and user intent are blurring fast.

“What we build next must inspire and empower—not intimidate or overwhelm,” said a person close to the matter.

As tech companies shift focus from digital-only platforms to integrated AI ecosystems, OpenAI sees Ive’s industrial design pedigree as the missing link to mass adoption. In other words: AI won’t just live on your screen—it will live with you.

Who Is Jony Ive—And Why He Still Matters

While no longer at Apple, Ive’s legacy remains influential. His LoveFrom studio commands up to $200 million annually from elite clients, including Airbnb, Christie’s, and Ferrari. His team also helped design Apple’s sprawling Cupertino headquarters, Apple Park, which opened in 2019.

Ive’s ability to translate complex technologies into accessible, beautiful products has made him a rare bridge between design, engineering, and emotion. His partnership with OpenAI could reshape how we physically interact with artificial intelligence in the years ahead.

A $6.4 Billion Signal to Silicon Valley

With this acquisition, OpenAI is signaling that the future of AI won’t just be smarter—it will be beautifully designed. The deal merges Silicon Valley’s most transformative force in software with the man behind some of the most iconic hardware in history.

It’s a gamble—but one that reflects OpenAI’s belief that human-centered design is the key to mass AI adoption.