OpenAI is set to acquire a promising artificial intelligence hardware startup founded by former Apple designer Jony Ive in a landmark $6.5 billion deal paid entirely in stock.
This acquisition marks OpenAI’s largest to date and signals a major strategic shift toward AI-powered consumer hardware.
According to Bloomberg News, the deal will bring under OpenAI’s umbrella a dedicated division focused on developing advanced AI-integrated devices.
The acquisition also secures the talents of Ive and several former Apple designers, many of whom were instrumental in creating iconic products such as the iPhone.
In a joint interview with OpenAI CEO Sam Altman, Ive reflected on the significance of the partnership, expressing that decades of design and innovation had led him to this pivotal moment.
He emphasized that the collaboration is expected to yield a new wave of groundbreaking AI devices.
Under the terms of the agreement, OpenAI will pay $5 billion in equity to Ive’s company, I/O. The remaining $1.5 billion accounts for a prior strategic partnership struck in 2023, which gave OpenAI a 23 percent stake in I/O. At that time, OpenAI’s investment arm also made a separate capital injection into the startup.
The acquisition is expected to be finalized during the summer, pending regulatory approval. Once completed, OpenAI will gain access to a specialized team of approximately 55 hardware engineers, software developers, and manufacturing experts.
Together, this team aims to develop a new category of AI-native hardware, potentially revolutionizing the way users interact with artificial intelligence in everyday life.
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