OpenAI Makes $6.4bn Bet on iPhone Legend’s New Vision

OpenAI has made its most expensive acquisition to date—shelling out $6.4 billion for io, a hush-hush hardware startup created by former Apple design chief Sir Jony Ive. While little is known about the company’s upcoming products, the deal signals a massive step toward OpenAI’s ambitions to merge artificial intelligence with physical products.

The announcement, made via a blog post co-authored by OpenAI CEO Sam Altman and Ive, reflected a partnership built on “friendship, curiosity and shared values.” The duo revealed that their collaboration began two years ago and has since evolved from mere “tentative ideas” into full-fledged designs. Although specifics about the hardware remain tightly under wraps, the size of the acquisition—and the people involved—has tech insiders buzzing.

Merging Creativity and AI

Founded just a year ago, io is part of a larger creative umbrella called LoveFrom, which Ive formed after departing Apple in 2019. The collective includes an eclectic mix of architects, engineers, musicians, designers and writers, with clients ranging from Airbnb to Ferrari. According to Bloomberg, the io team will now work directly with OpenAI’s researchers and engineers in San Francisco. While Ive won’t become an employee, his company will take over design responsibilities for all OpenAI products—including software.

Ive’s reputation as a design icon is well earned. During his 27-year tenure at Apple, he shaped some of the tech giant’s most recognisable devices: the iMac, iPod, iPhone, Apple Watch and AirPods. His minimalist design philosophy helped define Apple’s global brand identity. For his contributions, he was knighted in 2012—an honour he later described as “thrilling” and “particularly humbling.”

A Hardware Push in Motion

Although io hasn’t released any consumer devices yet, the acquisition aligns with OpenAI’s recent signals about moving into hardware. The company recently hired Caitlin “CK” Kalinowski—who previously led Meta’s AR glasses project—to work on robotics and partnerships. In a LinkedIn post, she stated her focus at OpenAI will be to “bring AI into the physical world.” The company also backed a robotics startup named Physical Intelligence, which aims to develop general-purpose AI systems with real-world capabilities.

OpenAI, now valued at around $300 billion, has seen a wave of investor confidence. In March, it secured $40 billion in fresh funding led by SoftBank. Tech giant Microsoft also holds a 49% stake after investing $13 billion last year.