On Wednesday, OpenAI announced a significant acquisition, purchasing Jony Ive's AI devices startup io for approximately $6.4 billion in an all-equity deal. This strategic move not only includes OpenAI's existing stake in the company but also positions Ive in key creative and design roles across both OpenAI and io.
OpenAI stated that io will merge with its operations, while Jony Ive and his creative collective, LoveFrom, will maintain their independence. This merger is expected to enhance OpenAI’s capabilities in creating innovative AI products. In a joint blog post from OpenAI's CEO Sam Altman and Jony Ive, it was revealed that io was founded just a year ago by Ive, along with Apple veterans Scott Cannon, Tang Tan, and Evans Hankey, who briefly succeeded Ive as Apple's chief design officer.
The io team is dedicated to developing products that inspire, empower, and enable users. Following the merger, they will collaborate closely with OpenAI's research, engineering, and product teams based in San Francisco. OpenAI confirmed that it is effectively paying $5 billion for the acquisition, given their previous 23% ownership in the startup. This acquisition marks OpenAI's largest investment to date, especially after its recent purchase of the AI-assisted coding tool Windsurf for $3 billion.
Jony Ive, renowned for his pivotal role as Apple's chief design officer, announced his departure from the tech giant in 2019 to establish LoveFrom. Since then, his consultancy has attracted high-profile clients, including Airbnb, which enlisted Ive's expertise for hiring and product innovation. Reports from The New York Times indicated that LoveFrom's clients could pay as much as $200 million annually for its design services, with projects ranging from collaborations with Christie's to Ferrari.
During his tenure at Apple, Jony Ive was instrumental in designing some of the company's most iconic products, including the iPod, iPhone, iPad, and MacBook Air. He also played a crucial role in designing Apple Park, Apple's new headquarters in Cupertino, which began construction in 2004 and officially opened in 2019.
The news of this acquisition arrives as OpenAI, recently valued at $300 billion in a funding round led by SoftBank, aims to maintain its lead in the highly competitive generative AI sector. Competitors such as Google, Anthropic, and xAI, founded by Elon Musk, are heavily investing and launching new products to capture market share.
To solidify its position in the AI landscape, OpenAI is also focusing on enhancing its hardware capabilities. In November, OpenAI appointed the former head of Meta's Orion augmented reality glasses initiative to spearhead its robotics and consumer hardware projects. Caitlin CK Kalinowski stated that her initial focus would be on robotics and partnerships aimed at integrating AI into the physical world.
Additionally, OpenAI made significant investments in the robotics sector, notably backing Physical Intelligence, a San Francisco-based startup that raised $400 million at a valuation of $2.4 billion. This startup aims to bring general-purpose AI into the real world through the development of advanced AI models and algorithms designed to empower robotic applications.
As OpenAI continues to innovate and expand its reach in artificial intelligence and related technologies, the merger with Jony Ive's io marks a pivotal step towards shaping the future of AI-driven products.
