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OpenAI acquires io startup founded by Jony Ive

OpenAI announced its acquisition of Jony Ive's AI startup io for $6.5 billion.

May 21, 2025 at 05:27 PM

OpenAI Buys Jony Ive's AI Startup to 'Completely Reimagine What It Means to Use a Computer'

OpenAI is acquiring io, a hardware AI startup founded by Jony Ive, as part of a new push in AI devices.

OpenAI acquires Jony Ive's AI startup io

OpenAI is acquiring io, a hardware-based AI startup co-created by Jony Ive, the company announced today. Ive has collaborated with OpenAI CEO Sam Altman on this project for two years, aiming to develop a new range of AI devices. Both executives shared their vision during a video announcement, highlighting their belief that their work has the potential to fundamentally change how people interact with computers. Ive stated, "I have a growing sense that everything I have learned over the last 30 years has led me to this place, and to this moment." Altman described a prototype given to him by Ive as the most amazing technology he has ever seen. While it remains unclear what the final product will be, early discussions suggest that it might resemble a smartphone without a screen. OpenAI's acquisition, valued at $6.5 billion, is pending regulatory approval and could reshape the competitive landscape, particularly against giants like Apple.

Key Takeaways

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OpenAI acquires hardware startup io for $6.5 billion.

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Jony Ive brings a strong design background to OpenAI's initiative.

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New AI device aims to redefine user interaction with technology.

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The partnership faces competition from established tech giants like Apple.

"I think we have the opportunity here to kind of completely reimagine what it means to use a computer."

Altman expresses optimism about the potential of the new AI device.

"I am absolutely certain that we are literally on the brink of a new generation of technology that can make us our better selves."

Ive discusses his vision for transformative technology through the new venture.

This acquisition marks a significant shift in OpenAI's strategy, moving from software exclusively to hardware innovation. With Jony Ive's design pedigree and OpenAI's tech prowess, they aim to redefine personal computing. However, the existing market for voice-based devices has been challenging, raising questions about the viability of their new offerings. As Apple trails in AI development, OpenAI and Ive could find an opening for breakthrough products, potentially reshaping user expectations for the future of technology.

Highlights

OpenAI is on the brink of a new generation of technology.
Ive's design expertise could redefine how we use computers.
The coolest piece of technology that the world will have ever seen.
This acquisition could reshape personal computing.

Financial implications of OpenAI's acquisition

The $6.5 billion acquisition of io raises concerns about OpenAI's resource allocation and the potential for backlash if the product does not meet expectations.

As regulatory hurdles remain, the tech world watches closely for what comes next.

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