OpenAI Acquires Jony Ive’s AI Hardware Startup

Breaking news today for Apple enthusiasts of a potentially groundbreaking collaboration between OpenAI and legendary industrial designer Jony Ive.

Jony is best known as the former Chief Design Officer at Apple, where he played a pivotal role in shaping the design of iconic products such as the iMac, iPod, iPhone, iPad, and Apple Watch. He worked closely with Steve Jobs for over a decade, forming one of the most influential partnerships in tech history. Ive’s focus on materials/fit & finish, minimalist and human-centered design philosophy helped define Apple’s aesthetic and user experience for over two decades.

Following his departure from Apple in 2019, Ive co-founded LoveFrom, an independent design firm, and more recently, launched the AI hardware startup io. OpenAI is now acquiring io, bringing Ive and his long-time collaborators—including Scott Cannon, Evans Hankey, and Tang Tan—into a new era of AI-driven product innovation.

Team Transition and Leadership

Approximately 55 employees from io—including hardware engineers, software developers, and manufacturing experts—will join OpenAI as part of this acquisition. This includes io co-founders Cannon, Hankey, and Tan. Ive, Cannon, Hankey, and Tan have all worked closely together for decades previously in Cupertino, and their new collaboration with OpenAI CEO Sam Altman is built on years of shared experience.

Deal Structure and Design Leadership

The acquisition is reportedly valued at nearly $6.5 billion. While Jony Ive will not be joining OpenAI full-time, his design firm, LoveFrom, will remain independent. However, according to Bloomberg, LoveFrom is set to take over design responsibilities for all OpenAI products, including software design.

Vision for the Future of AI Devices

The partnership’s aim is to “completely reimagine what it means to use a computer” and to explore “how to create a family of devices that would let people use AI to create all sorts of wonderful things.” Sam Altman described today’s setup—where “magic intelligence in the cloud” is accessed via laptops and browsers—as outdated, emphasizing that such powerful technology “deserves something much better.”

Criticism of Current AI Hardware

Jony Ive has been publicly critical of recent AI-focused hardware attempts, such as the Humane Pin and Rabbit R1, labeling them as “very poor products” lacking in originality and failing to express new ways of thinking through design.

First Product Timeline and Concept

Officially, the initial product from this collaboration is not positioned as an “iPhone killer.” Instead, Sam Altman describes it as “a totally new kind of thing,” much like how smartphones complemented rather than replaced laptops. The team has explored concepts ranging from AI-native headphones to camera-equipped ambient devices. The first products are expected to launch in 2026.

Altman revealed, “Jony recently gave me one of the prototypes of the device for the first time to take home, and I’ve been able to live with it. I think it is the coolest piece of technology that the world will have ever seen.”

Ive added on video that the product “has just completely captured our imagination.”

Far from under-promising, these statements has set ambitious expectations for what lies ahead.

Our take: While the duo is not positioning their debut product as an iPhone killer (possibly to not alienate Apple), this could end up being the “AI” centric hardware to replace the iPhone as everyone’s favorite productivity tool or Swiss army knife. Wild speculation: Maybe Apple will need to end up buying OpenAI to get Ive back into the fold? It would be an interesting parallel to Apple having to buy NeXT to get Jobs back into the driver’s seat.

Shared Vision and Reflections

Ive and Altman emphasized their shared values and long-term vision for technology’s role in society. Ive stated, “Everything I have learned over the last 30 years has led me to this moment,” describing a mix of anxiety and excitement about the journey ahead. He believes we are “on the brink of a new generation of technology that can make us our better selves.” Co-founder Evans Hankey echoed the sentiment, calling AI “probably the most incredible technology of our career.”

Commitment to Design and Societal Impact

Altman praised the meticulous design ethic of Ive’s team, stating, “No one can do this like Jony and his team; the amount of care they put into every aspect of the process is extraordinary.” Ive, in turn, praised Altman’s outward focus, noting his concern “for other people, for customers, for society, for culture”—rather than solely for his own company. One could surmise their ultimate goal is to democratize AI, making it accessible, usable, and empowering for all, helping people become more productive and creative.

Our coverage of Open AI buying Jony Ive’s hardware company:
Part 1 | Part 2 | Part 3 | Part 4

Watch the official video