OpenAI is making its biggest push into consumer technology by acquiring io, a hardware startup founded by legendary former Apple design chief Jony Ive, in a deal valued around $6.5 billion. This mostly all-equity acquisition brings roughly 55 engineers and product developers—including ex-Apple veterans Scott Cannon, Evans Hankey, and Tang Tan, who helped create the iPhone, iPad, and Apple Watch—into OpenAI. Having already owned 23% of io, OpenAI will now fully integrate the company to develop AI-native devices, with the first products expected to launch in 2026.

thrilled to be partnering with jony, imo the greatest designer in the world.

excited to try to create a new generation of AI-powered computers. pic.twitter.com/IPZBNrz1jQ — Sam Altman (@sama) May 21, 2025

Jony Ive will not join OpenAI as a full-time employee but will lead “deep creative and design responsibilities” across both OpenAI and its newly acquired hardware startup io through his independent design firm, LoveFrom. OpenAI CEO Sam Altman praised Ive and his team, emphasizing that creating great AI tools requires a blend of technology, design, and human understanding—something only Ive’s expertise can deliver.

Founded in 2023, io has been quietly developing hardware designed to harness the power of generative AI. Rumors suggest that OpenAI and Ive are working on a groundbreaking product aimed at transforming how people interact with AI, potentially creating a new category of devices that could complement or even replace smartphones in the future.

In a video shared by Altman captioned as “thrilled to be partnering with jony, imo the greatest designer in the world. Excited to try to create a new generation of AI-powered computers”, Ive stated, “The products that we’re using to deliver and connect us to unimaginable technology, they’re decades old. Surely there’s something beyond these legacy products.”

What Sam Altman Told OpenAI About the Secret Device He’s Making With Jony Ive https://t.co/Zsdfk5Q3Dl — WSJ Tech (@WSJTech) May 22, 2025

OpenAI’s upcoming device, though not meant to replace the smartphone, is being touted by both Sam Altman and Jony Ive as a groundbreaking innovation with disruptive potential. Altman described the prototype as “the coolest piece of technology the world will have ever seen,” while Ive expressed strong confidence in the project, calling it the start of a new generation of technology that can enhance human potential. Expected to launch in 2026, the product ideas range from AI-powered wearables like headphones to camera devices, with Altman and Ive collaborating closely on the project for over two years, reported The Wall Street Journal.