Microsoft (MSFT)-backed ChatGPT maker OpenAI announced plans on Wednesday to acquire io, the artificial intelligence startup launched by former Apple (AAPL) design head Jony Ive.

The all-stock deal is valued at just under $6.5 billion, with OpenAI paying $5 billion after accounting for its existing stake in the company. The companies said in a Wednesday blog post that the “creative collective” started by Ive, LoveFrom, started collaborating with OpenAI two years ago.

“It became clear that our ambitions to develop, engineer and manufacture a new family of products demanded an entirely new company,” Ive and OpenAI CEO Sam Altman said in the post.

“As io merges with OpenAI, Jony and LoveFrom will assume deep design and creative responsibilities across OpenAI and ios,” they said, with plans to debut their first product next year.

Altman said on social media Wednesday that the companies aim to “try to create a new generation of AI-powered computers.”

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