OpenAI moves into hardware by acquiring Jony Ive’s renowned startup io for $6.4 billion.

OpenAI confirmed on May 21 its plans to purchase Jony Ive’s hardware startup, io, in a stock-based deal valued at around $6.4 billion. This acquisition represents the largest investment by OpenAI to date and indicates a significant move towards hardware development for the company, which is primarily recognized for its generative AI technologies. As part of this arrangement, io will be integrated directly within OpenAI.

Jony Ive, who previously held a leading design role at Apple, will maintain the autonomy of his design agency, LoveFrom. He is well-known for his contributions to the design of iconic Apple devices like the iPhone and iPad. In his new role, he will oversee design and creative initiatives for both OpenAI and io.

In a collaborative announcement, Sam Altman, OpenAI’s CEO, and Ive indicated that the io team will move to San Francisco to collaborate closely with OpenAI’s teams focused on research and product development. Founded just a year ago by Ive along with his former Apple colleagues Scott Cannon, Tang Tan, and Evans Hankey, io began as an offshoot of LoveFrom.

Currently, OpenAI holds a 23% ownership stake in io, having contributed $1.4 billion to its overall valuation. The remaining funding, amounting to $5 billion, will come through equity transfer. This acquisition will integrate io’s team specializing in hardware design, enhancing OpenAI’s capacity in industrial design. Altman referred to Ive as “the greatest designer in the world” in a statement shared on social media.

This deal follows closely behind OpenAI’s agreement to acquire Windsurf, an AI coding assistant, for $3 billion.

In addition to developing in-house capabilities, OpenAI has also invested in Physical Intelligence, a robotics startup based in San Francisco, which raised $400 million in 2024 at a valuation of $2.4 billion. This funding round saw participation from Amazon founder Jeff Bezos. Physical Intelligence aims to create general-purpose AI for physical environments, highlighting OpenAI’s intention to merge software with physical systems.

The acquisition of io reinforces this direction, although OpenAI has yet to specify individual products. Past communications pointed to devices that are designed to “inspire, empower, and enable,” underscoring io’s goal of translating AI innovations into accessible consumer products. OpenAI’s takeover of io showcases its strategy to enhance its physical product offerings as competition in the generative AI space intensifies, with new players emerging from companies like Google, Anthropic, and xAI.