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OpenAI is acquiring io, the device startup that CEO Sam Altman and famed Apple designer Jony Ive have quietly been working on for two years, in an all-equity deal that values that startup at $6.5 billion, according to The Wall Street Journal. As part of the unusual deal announced Wednesday, Ive and his design firm, LoveFrom, will now lead creative and design work at OpenAI.
"thrilled to be partnering with jony, [in my opinion] the greatest designer in the world," said Altman in a post on X Wednesday. "excited to try to create a new generation of AI-powered computers."
OpenAI and Ive's collaboration puts one of Apple's former design heads — famous for crafting many iPhones, iPods, iPads, and Apple Watches — at the forefront of the newest technology wave, generative AI. Since the launch of ChatGPT in 2022, OpenAI has amped up its consumer business significantly. Earlier this month, the company appointed former Meta executive and Instacart CEO Fidji Simo to lead its consumer applications.
Ive could help OpenAI directly compete with Apple in the consumer hardware space, putting even more pressure on the iPhone maker. In recent years, Apple has struggled to develop AI features that keep up with the latest technology from OpenAI and Google. Apple's stock fell 2% on Wednesday after the OpenAI and Ive collaboration was announced.
Io has a staff of around 55 engineers, scientists, researchers, physicists, and product development specialists, per The Wall Street Journal, all of whom will join OpenAI. Many of io's employees are former Apple designers — including Scott Cannon, Evans Hankey, and Tang Tan — who helped build the firm's most iconic products.
Ive is retaining control of his design firm, LoveFrom, which will continue to operate independently.
Io, under OpenAI, will develop AI-powered consumer devices and other projects. Altman and Ive have reportedly been working on a device that moves consumers "beyond screens." Bloomberg reports that Ive and Altman's first devices are slated to debut in 2026. The Wall Street Journal reports that Ive will have an expansive role, giving input into future versions of ChatGPT and more.