Apple design legend Jony Ive is poised to become a billionaire through his stake in the AI hardware startup IO, which was recently acquired by OpenAI in a deal valued at $6.5 billion. The partnership aims to develop AI-powered consumer devices, leveraging Ive’s design expertise and OpenAI’s AI technology, potentially significantly increasing his wealth.
The video reports that Apple design legend Jony Ive is on the verge of becoming a billionaire due to his involvement in a deal with OpenAI. Ive, who co-founded the AI hardware startup IO, is set to benefit significantly from OpenAI’s acquisition of the company in an all-stock deal valued at $6.5 billion. Forbes estimates that Ive owns about 11% of IO and will receive shares worth approximately $715 million, although these shares will vest over several years and are subject to regulatory approval. Ive’s previous compensation at Apple, which he declined to disclose publicly, suggests he could already be a billionaire, especially considering his long tenure and stock holdings during his time there.
Ive’s career spans nearly three decades at Apple, where he was responsible for designing iconic products like the iPhone. Beyond his work at Apple, he has built a diverse portfolio, including a real estate empire valued at around $100 million and a design firm called Love from, which generates roughly $200 million annually. His influence at Apple was significant, with Steve Jobs once stating that Ive had more operational power than anyone else at the company except himself. The details of Ive’s wealth are somewhat opaque, but his stock holdings from Apple and other ventures suggest he is already a billionaire or close to it.
The acquisition of IO by OpenAI is a strategic move to develop AI-powered hardware devices, a market that has proven challenging for tech giants like Meta and Google. IO, which Ive co-founded with former Apple colleagues, grew out of a partnership with Love from and has raised around $225 million from investors including Sutter Hill Ventures, Thrive Capital, and the Emerson Collective. Prior to the deal, OpenAI already owned a 23% stake in IO, and the remaining 77% will be acquired for an estimated $5 billion, likely paid through profit-sharing units that vest over four years.
IO’s mission, as articulated by OpenAI CEO Sam Altman, is to create a family of devices that leverage AI to enable users to create a wide range of innovative products. The company appears to be working on consumer-facing AI hardware, a notoriously difficult market to succeed in, given the mixed results of competitors like Meta and Google’s smart glasses. Despite the challenges, investors like Mike Spiser from Sutter Hill Ventures believe IO’s team, which includes some of the greatest builders of consumer products, has the expertise to succeed where others have struggled.
Overall, the deal marks a significant milestone for Jony Ive, blending his legendary design expertise with cutting-edge AI hardware development. While the specifics of what IO is building remain sparse, the partnership with OpenAI signals a focus on creating innovative AI-powered devices for consumers. With Ive’s extensive experience and the backing of major investors, the project has the potential to make a substantial impact in the emerging AI hardware market, and Ive’s personal wealth is poised to grow substantially as a result.