Jony Ive is back in consumer tech with OpenAI — and his next move could rival the iPhone
A new hardware team is forming at OpenAI, and it’s made up of some very familiar names in Silicon Valley.
OpenAI is making its biggest move into hardware yet, and it's doing so with the help of one of tech’s most iconic designers. The company is acquiring io, an AI device startup founded by former Apple design chief Jony Ive, in a deal worth nearly $6.5 billion in equity and prior investment.
As first reported by Bloomberg's Mark Gurman, the acquisition gives OpenAI not just a hardware team of about 55 engineers and designers, but also the creative leadership of Ive himself. Best known for shaping the look and feel of the iPhone, iPod, and Mac, Ive left Apple in 2019 and went on to start the design firm LoveFrom. While LoveFrom will stay independent, it will now take charge of designing OpenAI’s products, including its software interfaces.
Ive and OpenAI CEO Sam Altman have been quietly working together for nearly two years. Their goal is to develop a new kind of AI-first device that reimagines how people interact with technology. Ive called it the result of decades of experience, while Altman said it marks a shift toward a form factor better suited to the power of artificial intelligence.
OpenAI’s hardware division will operate from io’s existing headquarters in San Francisco. The company says it plans to keep investing in other AI ventures as well, including a $3 billion bid to acquire Windsurf, an AI coding startup.
Altman called the partnership with Ive a "crazy, ambitious thing to make," but believes the results will be worth the wait.
As first reported by Bloomberg's Mark Gurman, the acquisition gives OpenAI not just a hardware team of about 55 engineers and designers, but also the creative leadership of Ive himself. Best known for shaping the look and feel of the iPhone, iPod, and Mac, Ive left Apple in 2019 and went on to start the design firm LoveFrom. While LoveFrom will stay independent, it will now take charge of designing OpenAI’s products, including its software interfaces.
I have a growing sense that everything I have learned over the last 30 years has led me to this moment. While I am both anxious and excited about the responsibility of the substantial work ahead, I am so grateful for the opportunity to be part of such an important collaboration. The values and vision of Sam and the teams at OpenAI and io are a rare inspiration.
— Jony Ive, io
The io team includes key Apple veterans like Evans Hankey, Tang Tan, and Scott Cannon. All are joining OpenAI as employees, bringing deep experience in hardware design and manufacturing. Their first product is expected to launch in 2026. Altman said it won't replace smartphones, but will introduce something entirely new.
This deal comes as Apple is seen to be lagging behind in the AI race. Its current platform still leans on tools like ChatGPT to fill functionality gaps. That makes the involvement of Ive and his former Apple colleagues all the more significant, as they now work to build devices that could eventually rival Apple's most iconic products.
This deal comes as Apple is seen to be lagging behind in the AI race. Its current platform still leans on tools like ChatGPT to fill functionality gaps. That makes the involvement of Ive and his former Apple colleagues all the more significant, as they now work to build devices that could eventually rival Apple's most iconic products.
OpenAI’s hardware division will operate from io’s existing headquarters in San Francisco. The company says it plans to keep investing in other AI ventures as well, including a $3 billion bid to acquire Windsurf, an AI coding startup.
Altman called the partnership with Ive a "crazy, ambitious thing to make," but believes the results will be worth the wait.
FCC OKs Cingular\'s purchase of AT&T Wireless
Things that are NOT allowed: