OpenAI Acquires Jony Ive's io in $6.5B AI Hardware Play
OpenAI Bets Big on Post-Smartphone Future With Design Legend
OpenAI has made its largest acquisition to date - purchasing Jony Ive's secretive hardware startup io for $6.5B in stock. The deal pairs ChatGPT's AI capabilities with the industrial design genius behind the iPhone, signaling a bold move into AI-first consumer devices that could redefine human-computer interaction.
The Deal Structure
- All-stock transaction valuing io at $6.5B TechCrunch
- io's 55-person team (including former Apple engineers) joins OpenAI
- Jony Ive retains leadership of LoveFrom design firm through consulting agreement Bloomberg
Strategic Implications
- First hardware division: Establishes OpenAI's device development arm led by ex-Apple talent
- 2026 target: Prototype device shown to Altman aims for 2026 release Reuters
- Beyond screens: Focus on voice-first, ambient computing interfaces per joint video statement
Industry Reactions
"This is Apple 2007 energy," tweeted @techvisionary2025 (28K likes). Analysts note OpenAI's valuation jumped 4% post-announcement despite Apple's 2% dip.
Future Outlook
The partnership aims to create "delightful" AI companions that learn user habits. Early prototypes suggest a screenless device using Gemini-level multimodal AI The Information.
Social Pulse: How X and Reddit View OpenAI's Hardware Gambit
Dominant Opinions
- Optimistic (45%):
- @sama: 'Jony's prototype is the coolest tech I've ever used - like magic made physical'
- r/Futurology post: 'Finally! Phones trapped us in screens - AI needs new interfaces'
- Skeptical (30%):
- @TechEthicist: '$6.5B for vaporware? Humane AI Pin 2.0 incoming'
- r/hardware thread: 'Proprietary hardware + closed AI = dystopian combo'
- Neutral (25%):
- @MKBHD: 'Reserving judgment until 2026 - Ive's track record vs AI's scaling challenges'
Overall Sentiment
Enthusiasm for iconic designer-AI pairing balances concerns about commercialization timelines and ecosystem control.