“Thrilled to be partnering with Jony, [in my opinion] the greatest designer in the world”, Altman posted on X. “Excited to try to create a new generation of AI-powered computers”.
This strategic move signals OpenAI’s intent to create specialized AI-native devices, potentially opening a new product category optimized for ambient and intuitive interaction. The timing aligns with OpenAI’s surging valuation, now estimated at around $300 billion.
Although some skepticism has emerged, particularly over IO’s lack of shipped products, insiders cite the $200 million in annual revenue from LoveFrom, Ive’s design consultancy, as a key indicator of the venture’s value. The all-equity nature of the deal also allows OpenAI to retain capital while offering IO’s team ownership in the future.
Io was born from two years of quiet collaboration between Altman and Ive. Despite being a pre-revenue startup, its 55-person team includes former senior Apple figures like Evans Hankey, Tang Tan, and Scott Cannon. Reports suggest they have already prototyped tactile, modular AI hardware equipped with sensors and powered by OpenAI’s language models.
In a video posted by OpenAI, when introducing the merge with io, Sam Altman described an early prototype as “the coolest piece of technology the world will have ever seen“.
While Ive, won’t join OpenAI directly, his firm LoveForm will lead design efforts across both OpenAI and io. The hardware team will be integrated into a new division at OpenAI, reporting to VP of Product Peter Welinder, who is based in San Francisco.
This announcement sent ripples through Silicon Valley. Apple shares dropped 2% following the news that its former design chief was now building rival hardware. Analysts suggest OpenAI is positioning itself as a vertically integrated AI powerhouse, controlling both the model and the device.
This OpenAI acquisition reflects its vision to redefine human-computer interaction, potentially sparking fundamental changes in tech design, privacy standards, and cognitive behavior.
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