OpenAI has reached an agreement to acquire io, a hardware startup founded by Jony Ive, the former chief designer at Apple, along with several ex-Apple engineers, including Scott Cannon, Evans Hankey, and Tang Tan.
Although Ive won’t be joining OpenAI and his design agency, LoveFrom, will remain autonomous, the group will take charge of design across OpenAI, covering both hardware and software, in a deal valued at approximately $6.5 billion, according to Bloomberg.
The acquisition will see about 55 engineers and developers from io, including Cannon, Hankey, and Tan, become part of OpenAI. The initial products stemming from this partnership are projected to launch in 2026.
In a conversation with Bloomberg, Ive critiqued recent AI hardware products such as the Humane Pin and Rabbit R1, describing them as “very poor products” and lamenting the lack of innovative design approaches in current offerings.
OpenAI CEO Sam Altman clarified that the inaugural product from this collaboration is not intended to overshadow smartphones. He stated, “In the same way that the smartphone didn’t make the laptop go away, I don’t think our first thing is going to make the smartphone go away. It is a totally new kind of thing,” he conveyed to Bloomberg.
The Wall Street Journal reported that Altman and LoveFrom have collaborated for two years, exploring concepts including headphones and camera devices. Preliminary details regarding their current project were shared during an internal OpenAI meeting, highlighting that the forthcoming device will be pocket-sized, contextually aware, and screen-free, while not being classified as smart glasses.
Ive remarked in a video that the new product has “completely captured our imagination.”
Altman described his experience with a prototype: “Jony recently gave me one of the prototypes of the device for the first time to take home, and I’ve been able to live with it. I think it is the coolest piece of technology that the world will have ever seen.”
Ive expressed his enthusiasm for the collaboration, stating, “I am absolutely certain that we are literally on the brink of a new generation of technology that can make us our better selves.”
In a joint announcement, Ive and Altman highlighted the gathering of top-tier hardware and software talents, as well as specialists in product development and manufacturing. “Many of us have worked closely for decades. The io team, focused on developing products that inspire, empower, and enable, will now merge with OpenAI to work more intimately with the research, engineering, and product teams in San Francisco,” they stated.
Altman noted the significance of combining AI technology with thoughtful design, stating, “AI is an incredible technology, but great tools require work at the intersection of technology, design, and understanding people and the world. No one can do this like Jony and his team; the amount of care they put into every aspect of the process is extraordinary.”
Ive also reflected on his journey, saying, “I have a growing sense that everything I have learned over the last 30 years has led me to this moment. While I am both anxious and excited about the responsibility of the substantial work ahead, I am so grateful for the opportunity to be part of such an important collaboration. The values and vision of Sam and the teams at OpenAI and io are a rare inspiration.”
Hankey shared his perspective on the technology, noting, “A number of us looked at each other and said, ‘This is probably the most incredible technology of our career,” in an interview with Bloomberg.
Update, May 21st: Added information from The Wall Street Journal.
Update, May 22nd: Added device details leaked to The Wall Street Journal.
