OpenAI has announced its acquisition of Jony Ive’s startup, io Products, in a significant $6.5 billion (approximately Rs. 55,850 crore) transaction. With this move, the former chief designer of the iPhone will join OpenAI as the creative lead, focusing on the development of devices optimized for the era of generative artificial intelligence.
LoveFrom, the design studio established by Ive after his departure from Apple, has collaborated with OpenAI for the past two years to explore innovative generative AI products. This sector has presented challenges for various startups, evidenced by setbacks like the Humane AI Pin, which struggled to meet performance expectations amidst high computing requirements.
With Ive at the helm of design, OpenAI intends to integrate the advanced capabilities of its popular ChatGPT chatbot with the product design skills that transformed the iPhone into a market favorite.
The specific financial arrangements of the deal regarding io, which Ive co-founded just a year ago, remain undisclosed. However, sources indicate the all-stock agreement values the company at $6.5 billion (about Rs. 55,850 crore), reflecting OpenAI’s overall valuation of $300 billion (roughly Rs. 25,77,871 crore).
Prior to this acquisition, OpenAI held a 23 percent share in the company, according to an anonymous source familiar with the discussions.
In a video posted on OpenAI’s blog, CEO Sam Altman and Ive discussed the need for innovation in product design, asserting, “The products that we’re using to deliver and connect us to unimaginable technology are decades old. It’s just common sense to consider that there might be something beyond these legacy products.”
Altman hinted at the existence of a prototype device, describing it as “the coolest piece of technology the world will have ever seen,” although further information was not provided.
Apple has yet to respond to inquiries regarding the acquisition, and its stock price fell by over two percent following the announcement.
The company has been relatively slow in launching Apple Intelligence, a suite of features incorporating ChatGPT, while several sophisticated AI tools are already available on competing Android devices.
D.A. Davidson analyst Gil Luria commented on OpenAI’s ambitions, suggesting that the company aims to establish its own hardware platform to avoid reliance on Apple’s iOS or Google’s Android for distribution. “This mirrors Meta’s ambitions with the Quest goggles and Meta Ray Bans,” Luria noted.
Other firms like Humane AI and Rabbit have attempted to create unique devices tailored for the AI age. However, Humane AI, founded by ex-Apple executives, faced substantial issues with its AI Pin device, including criticisms regarding battery life, overheating, limited features, and high pricing.
In a significant development, HP acquired the assets of Humane AI, including its AI platform Cosmos, intellectual property, and technical talent for $116 million (roughly Rs. 996 crore), effectively ending the AI Pin initiative.
Meanwhile, Rabbit has successfully sold over 100,000 units of its r1 devices, yet reviewers have pointed out that its functionality still falls short when compared to traditional smartphones.
© Thomson Reuters 2025
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
