OpenAI buys iPhone designer Jony Ive’s start up for $6.4 billion

OpenAI, the creator of ChatGPT, has made its largest known acquisition to date, purchasing io, an untested hardware startup founded by Apple’s renowned design guru, Jony Ive.

Valued at an estimated $6.4 billion, the deal signals OpenAI’s move into the physical world of AI products.

The partnership between Ive and OpenAI CEO Sam Altman has been two years in the making. In a joint blog post, they stated, “A collaboration built upon friendship, curiosity and shared values quickly grew in ambition. Tentative ideas and explorations evolved into tangible designs.” While the blog post offered few specific details on upcoming devices, it confirms a deep integration of design and AI.

Jony Ive, one of the principal architects of the iPhone, left Apple in 2019 after a 27-year career where he was celebrated for his simple, clean aesthetics and meticulous attention to detail. His iconic designs include the original iPod, iPhone, MacBook Air, Apple Watch and AirPods, leading to his knighthood in 2012.

Ive and a group of other Apple alumni founded io a year ago as part of LoveFrom, Ive’s broader “creative collective.” Following the acquisition, the io team will merge with OpenAI, working “more intimately with the research, engineering and product teams in San Francisco.” Although Ive himself will not become an OpenAI employee, his company will “take over design for all of OpenAI, including its software,” according to Bloomberg.

OpenAI has been hinting at its hardware ambitions, having hired staff with expertise in hardware and robotics, including Caitlin “CK” Kalinowski, who previously led Meta’s augmented reality glasses initiative. Kalinowski’s new role at OpenAI focuses on “robotics work and partnerships to help bring AI into the physical world.” The company has also invested in the robot startup Physical Intelligence, which aims to bring “general-purpose AI into the physical world.”

This acquisition is part of a series of major moves by OpenAI, which is now valued at $300 billion. Earlier this month, it acquired the AI-assisted coding tool Windsurf for $3 billion.