In a significant move in the tech industry, OpenAI announced on Wednesday that it is acquiring io, the company co-founded by renowned designer Jony Ive, in an all-stock transaction valued at an impressive $6.5 billion. This acquisition has sparked considerable interest and discussions among investors and tech enthusiasts alike.
Shortly after the announcement, Klarna CEO Sebastian Siemiatkowski took to social media platform X to share an unexpected revelation. He disclosed that his family’s investment office, Flat Capital, had acquired shares in io approximately six months prior to the acquisition announcement. Given that this deal is all-stock, the shares owned by Flat Capital will now transform into shares of OpenAI’s for-profit arm.
“Excited that @FlatCapital was an investor in io and that we will now receive even more shares in OpenAI at a hefty return for an investment we did some 6 months ago,” Siemiatkowski tweeted, highlighting the lucrative nature of the investment.
The tweet from Siemiatkowski generated substantial buzz, prompting his investment firm to issue a public statement. They confirmed that io was indeed the unnamed company they had previously backed when they announced a “mini-portfolio” of investments in U.S. AI companies. Flat Capital disclosed that their investment in io amounted to 34 million SEK, roughly translating to $3.6 million.
In a surprising twist, former Google employee and designer Luke Wroblewski, who now serves as a managing director at the prestigious venture capital firm Sutter Hill Ventures, also chimed in on the acquisition. Although he later deleted his tweet and LinkedIn post, Wroblewski congratulated io on its acquisition by OpenAI, expressing his satisfaction in being an investor in the company.
Reports suggest that Sutter Hill Ventures may have been the second-largest investor in io, but TechCrunch was unable to confirm this information. Despite attempts to reach out for a comment, Sutter Hill Ventures did not respond, and Wroblewski promptly deleted his posts following inquiries.
The acquisition of io by OpenAI marks a pivotal moment in the ongoing evolution of artificial intelligence and design innovation. As the tech landscape continues to shift, this all-stock deal not only highlights the growing influence of AI but also underscores the potential for significant returns on investment in the rapidly expanding tech sector.
