In a major development for the world of AI and product design, OpenAI has announced the acquisition of Jony Ive’s hardware startup, io, in a deal valued at approximately $6.5 billion. The acquisition marks a significant push by the AI leader into consumer hardware, bringing together top-tier design talent and artificial intelligence expertise.
While Jony Ive and his design firm LoveFrom will remain independent, several of his close collaborators—including Scott Cannon, Evans Hankey, and Tang Tan—will join OpenAI alongside a team of around 50 engineers, designers, and researchers. Together, they will focus on creating physical products designed to offer intuitive and meaningful interactions with AI technologies.
The newly integrated team will operate in tandem with OpenAI’s core teams, working on what has been described as a new generation of “AI-native” devices. Although exact product details have not been revealed, the goal is to build tools and devices that are as impactful and human-centric as the smartphone revolution once was.
While OpenAI has not officially confirmed whether the transaction is cash or equity-based, reports suggest it is an all-equity deal. The company is still in a high-growth phase and yet to post a profit, with significant financial backing coming from its ongoing partnership with Microsoft. Despite questions surrounding funding, OpenAI CEO Sam Altman expressed confidence in the company’s financial future.
OpenAI already held a 23% stake in io following a prior agreement in late 2024. This full acquisition consolidates control as the AI powerhouse looks to extend its capabilities beyond software and into the world of consumer hardware.
The exact nature of the upcoming products remains under wraps, but OpenAI hinted at a long-term roadmap aimed at creating a “family of AI products for everyone.” While it may take years before these devices reach the public, the merger signals a bold new chapter for how AI could be integrated into everyday life.
For Indian startups and product innovators, this move underscores the increasing importance of merging design excellence with AI capabilities. With global leaders placing bets on hardware-driven AI experiences, the door is wide open for innovation in India’s own tech ecosystem.
