Sir Jony Ive, the renowned designer behind iconic Apple products like the iPhone and iPod, is joining forces with OpenAI to develop AI-driven hardware. OpenAI is acquiring Ive's startup, io, in a deal valued at $6.4 billion. This move underscores a growing sentiment in Silicon Valley that AI assistants could revolutionize the gadget world, potentially displacing traditional devices like laptops and smartphones.

OpenAI CEO Sam Altman expressed excitement about partnering with Ive to create a new generation of AI-powered computers. Ive, in turn, believes that the world is on the brink of a new era of technology. The collaboration aims to reimagine the very essence of computing and develop a family of devices specifically designed with AI in mind.

Prior to this merger, OpenAI held a 23% stake in io. LoveFrom, Ive's independent company, will remain separate, with Ive taking on significant creative and design responsibilities across both OpenAI and io. Several Apple design veterans, including Scott Cannon, Tang Tan, and Evans Hankey, co-founders of io, are also joining OpenAI.

While details about the specific products being developed remain scarce, Gartner analyst Chirag Dekate suggests they could be "physical AI embodiments" that integrate generative AI chatbot technology into new forms, such as cars or humanoid robots. Ive himself has criticized existing AI hardware products like the Humane AI Pin and Rabbit R1, suggesting a desire to create more impactful and user-friendly devices.

The announcement serves as a potential wake-up call for Apple, as Ive's collaboration with OpenAI could lead to products that challenge Apple's dominance in the hardware industry. Apple executives, including Eddy Cue, have acknowledged the possibility of AI devices replacing the iPhone within a decade. Apple's efforts to improve its built-in assistant, Siri, have faced delays, and the company has integrated OpenAI's ChatGPT to handle queries that Apple Intelligence cannot.

Other tech giants are also investing heavily in AI-powered assistants and hardware. Meta's Ray-Ban smart glasses have seen success, and Google is developing new AI models, smart glasses prototypes, and an "agent mode" for its Gemini assistant. The industry is eagerly anticipating Apple's next moves, which are expected to be revealed at the upcoming WWDC conference in June.

The deal marks OpenAI's largest acquisition to date. It comes after OpenAI recently finalized a $40 billion financing led by SoftBank Group Corp., valuing the company at $300 billion. OpenAI is also reportedly restructuring into a public benefit corporation, potentially paving the way for a future IPO.

Jony Ive's legacy extends beyond Apple. His career is marked by iconic designs such as the iMac, iPod, iPhone, MacBook Air, iPad, and Apple Watch. His design philosophy emphasizes simplicity, functionality, and seamless integration of hardware and software. As he embarks on this new venture with OpenAI, the tech world watches with anticipation to see how his design expertise will shape the future of AI hardware.