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OpenAI closes acquisition of Jony Ive's startup

OpenAI acquired Jony Ive's AI hardware startup, io, for $6.5 billion in a major deal.

July 11, 2025 at 10:00 AM

OpenAI closes Jony Ive AI hardware startup acquisition deal

OpenAI's acquisition of Jony Ive's startup positions it for significant hardware innovation.

OpenAI acquires Jony Ive's AI hardware startup

OpenAI has officially acquired Jony Ive's AI hardware startup, io, for $6.5 billion, marking its largest acquisition to date. The deal comes after extensive negotiations and signals OpenAI's ambition to develop next-generation AI-powered devices. The merger allows OpenAI to employ Ive's design expertise, positioning them to compete with major tech players like Apple and Google. OpenAI aims to create innovative hardware that aligns with AI's evolving needs, potentially altering the tech landscape dramatically.

Key Takeaways

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OpenAI's acquisition represents its largest investment in hardware to date.

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Jony Ive's design expertise may lead to innovative AI-powered devices.

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User trust will be essential for the success of new AI interactions.

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The deal positions OpenAI to challenge major tech companies in hardware.

"We’re thrilled to share that the io Products, Inc. team has officially merged with OpenAI."

This quote highlights OpenAI's enthusiasm about the merger with Jony Ive's company.

"Computers, software, and hardware were designed for a world without AI."

Sam Altman's reflection shows the need for new approaches in hardware design.

"The io team will now merge with OpenAI to work closely with the research and product teams."

This statement confirms the integration of Jony Ive's team into OpenAI's operations.

"The first product they developed alongside OpenAI was well executed and captured their imaginations."

Jony Ive's acknowledgement suggests promising collaboration on future products.

The acquisition illustrates OpenAI's commitment to integrating hardware with AI technology, setting a new standard in the industry. As AI's role in daily life expands, there is a growing demand for devices tailored for AI interaction. This strategic move not only strengthens OpenAI's market position but also raises questions about user trust in AI systems. Sam Altman's vision of transcendentally good AI could redefine how we engage with technology, but it hinges on user acceptance and adaptability to new forms of interaction.