OpenAI partners with iconic iPhone designer Jony Ive on $6.5B AI hardware project

OpenAI Acquires Jony Ive’s Startup in $6.5B Deal to Pioneer Next-Gen AI Hardware

In a bold move to bridge the gap between artificial intelligence and cutting-edge consumer hardware, OpenAI has announced the acquisition of io Products, a design and engineering firm co-founded by Jony Ive, the legendary designer behind Apple’s iPhone.

The acquisition, valued at nearly $6.5 billion, signals OpenAI’s strategic expansion into hardware innovation and positions Ive at the forefront of a new era of AI product design. The deal includes $5 billion in equity, with OpenAI already holding a 23% stake from a previous collaboration.

Though the specific product under development remains under wraps, OpenAI hints at a vision that moves AI beyond screens and into the physical world. Industry analysts suggest possibilities ranging from AI-powered wearables and robotics to smart devices like glasses or vehicles—areas already being explored by tech giants such as Google and Meta.

The partnership has been evolving behind the scenes. Ive and OpenAI CEO Sam Altman have reportedly been collaborating since 2023 through Ive’s design firm, LoveFrom. In a joint statement released on OpenAI’s website, they explained that their shared ambition to create “a new family of products” required forming an entirely new company, leading to the founding of io Products. The firm was incorporated in Delaware in September 2023 and later registered in California in April 2024.

While Jony Ive will not join OpenAI as a full-time employee, LoveFrom will remain independent and continue to lead design and creative direction across both OpenAI and io. OpenAI confirmed that Peter Welinder, a veteran executive who previously headed robotics and new product explorations, will oversee the new io division.

Ive, whose minimalist design philosophy shaped Apple’s identity during a 27-year career, is now stepping into the AI age with a vision reminiscent of his collaboration with the late Steve Jobs. Their partnership led to the creation of iconic devices such as the iPhone and iMac, reshaping consumer technology.

The San Francisco-based LoveFrom office is located in a historic neighborhood once frequented by literary icons like Jack Kerouac and Allen Ginsberg—fitting for a company founded on creativity and innovation. OpenAI’s headquarters is just two miles away.

Founded in 2015 as a nonprofit AI research lab, OpenAI remains governed by a nonprofit board, though Altman has pushed the organization toward commercialization with products like ChatGPT. In a recent statement, Altman indicated OpenAI would maintain its nonprofit structure but is exploring changes to better access capital, pursue acquisitions, and operate with greater flexibility.

As OpenAI prepares to bring artificial intelligence into the physical realm, the collaboration with Ive marks a pivotal moment—one that could redefine not just how AI is used, but how it’s experienced.