OpenAI is acquiring Jony Ive’s AI devices startup, IO Products, for approximately $6.4 billion, signaling a strategic move into AI hardware development. Ive will lead design and innovation efforts at OpenAI, working alongside a team of experts to create advanced AI devices, while his company LoveFrom remains independent.
OpenAI is set to acquire Jony Ive’s AI devices startup, IO Products, in a deal valued at approximately $6.4 billion. This significant transaction highlights OpenAI’s strategic move into the hardware side of AI development. Jony Ive, renowned for designing iconic Apple products such as the iPhone, Mac, iPod, iPad, and Apple Watch, is a legendary figure in Silicon Valley. His involvement brings a high level of design expertise and innovation to the emerging AI hardware sector.
The deal is primarily an all-equity transaction, with OpenAI already owning about 23% of IO Products. To complete the acquisition, OpenAI plans to invest roughly $5 billion more into the company. Given OpenAI’s own valuation of around $300 billion, this deal represents a substantial investment in early-stage AI hardware development. IO Products, despite not having any devices on the market yet, signals a clear shift towards integrating hardware and AI technologies.
This move indicates that OpenAI is increasingly focusing on the hardware aspect of AI, a trend gaining momentum among tech giants. By acquiring a company led by a legendary designer like Ive, OpenAI aims to develop innovative AI devices and hardware solutions. The investment underscores the importance of physical products in the future of AI, as companies seek to create more integrated and user-friendly AI experiences.
Jony Ive will continue to dedicate himself primarily to his role at OpenAI, taking on a deep creative and design leadership position. He will oversee both OpenAI and IO Products, working alongside a team of top hardware and software engineers, scientists, physicists, and researchers. This collective aims to push the boundaries of AI hardware development, combining expertise across multiple disciplines to create cutting-edge products.
Ive’s own company, LoveFrom, which he founded after leaving Apple in 2019, will remain independent despite the merger. Ive has previously collaborated with OpenAI CEO Sam Altman on AI hardware projects, indicating a longstanding interest in advancing AI technology through innovative hardware solutions. Overall, this deal marks a significant step for OpenAI in expanding its influence into the physical realm of AI devices and hardware innovation.