In a bold step toward its hardware ambitions, OpenAI has acquired design startup io for $6.4 billion — its largest acquisition to date. The startup, founded by legendary Apple designer Jony Ive, is part of a broader initiative to bring artificial intelligence into the physical world.

The announcement came via a joint blog post by OpenAI CEO Sam Altman and Jony Ive, who described their partnership as “a collaboration built upon friendship, curiosity and shared values.” They revealed that their alliance has been two years in development, though details on future products remain limited.

“Tentative ideas and explorations evolved into tangible designs,” the duo wrote, suggesting that OpenAI’s foray into hardware is no longer a distant goal but an imminent reality.

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Who is Jony Ive?

Jony Ive, the former Chief Design Officer at Apple, is renowned for creating some of the tech industry’s most iconic products — including the iPhone, iPod, MacBook Air, and Apple Watch. He left Apple in 2019 after a 27-year tenure and launched LoveFrom, a creative collective encompassing designers, artists, architects, and engineers.

The startup io, formed under the LoveFrom umbrella just a year ago, had not publicly unveiled any products. Its acquisition marks a strategic move by OpenAI to tap into Ive’s unmatched design ethos.

‘io’ team integration with OpenAI

Post-acquisition, the io team will merge with OpenAI’s research, engineering, and product divisions in San Francisco. While Ive himself will not formally join OpenAI, his firm will lead design across all OpenAI products, including software, according to reports from Bloomberg.

Ive is also reportedly designing LoveFrom’s headquarters in San Francisco, which may serve as a creative hub for the ongoing partnership with OpenAI.

OpenAI hardware ambitions

Though OpenAI has yet to launch a hardware product, its moves signal intent. It recently hired CK Kalinowski, formerly of Meta’s AR glasses division, to lead robotics and hardware efforts. The company has also invested in robotics startup Physical Intelligence, aiming to integrate general-purpose AI with the physical world.

Company value

OpenAI’s rapid growth is backed by deep pockets. Now valued at $300 billion, the company secured $40 billion in funding from SoftBank in March, while Microsoft holds a 49% stake after a $13 billion investment in 2023.

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Alongside io, OpenAI has expanded aggressively, acquiring AI coding tool Windsurf for $3 billion and purchasing real-time database startup Rockset last summer. With these moves, OpenAI is swiftly evolving from a software-focused research lab into a full-stack AI powerhouse, eyeing both digital and physical domains.