OpenAI Acquires AI Device Company io for $6.5 Billion USD

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Summary

OpenAI acquires ex-Apple design chief Jony Ive’s AI hardware company io for $6.5 billion USD
The all-stock deal was largely due to a two year collaboration between Ive and Sam Altman
The deal marks OpenAI’s largest acquisition to date

OpenAI has announced its acquisition of io, the AI hardware startup founded by former Apple design chief Jony Ive. OpenAI CEO Sam Altman struck a landmark $6.5 billion USD all-stock deal, marking this OpenAI’s largest acquisition to date and a significant move into the consumer hardware market.

The company previously saw OpenAI own a 23% minority stake in io. Ive, who founded the company last year, is best known for his extensive work at Apple Inc. where he served as Chief Design Officer until his departure in 2019. He was a pivotal figure in the design of many of Apple’s most iconic products, including the iMac, iPod, iPhone, iPad, MacBook and the Apple Watch. io was founded last year by Ive and this acquisition will see the company merge its team of 55 engineers, designers and researches who are ““focused on developing products that inspire, empower and enable” with OpenAI “to work more intimately with the research, engineering and product teams in San Francisco.”

OpenAi also said in the announcement that a collaboration between Ive and the creative collective LoveFrom and Altman began two years ago. It said, “A collaboration built upon friendship, curiosity and shared values quickly grew in ambition. Tentative ideas and explorations evolved into tangible designs.” The statement continues, “As io merges with OpenAI, Jony and LoveFrom will assume deep design and creative responsibilities across OpenAI and io.” The scope of OpenAi’s plans post-acquisition are closely kept under wraps, Wall Street Journal reported that the “closely guarded project” on a new device “will move consumers beyond screens” and see OpenAI and io “considering options including headphones and other devices with cameras.” Altman said in a statement, “AI is an incredible technology, but great tools require work at the intersection of technology, design and understanding people and the world. No one can do this like Jony and his team; the amount of care they put into every aspect of the process is extraordinary.”