OpenAI and Jony Ive Forge Historic $6.5B AI Hardware Alliance

OpenAI has announced a landmark partnership with the renowned former Apple design chief Jony Ive, marking a significant shift in the company’s trajectory toward consumer hardware.

The collaboration involves OpenAI’s acquisition of Ive’s AI hardware startup, io, in an all-stock deal valued at approximately $6.5 billion, making it OpenAI’s largest acquisition to date.

Jony Ive will play a critical role in determining the design and creative direction of OpenAI’s upcoming hardware products. Not to forget, Ive’s career trajectory makes him a celebrated figure for his iconic designs at Apple, including the iPhone. OpenAI is set to collaborate with the io team, which includes former Apple executives such as Evans Hankey and Tang Tan, to create cutting-edge AI-powered devices. Moreover, these devices will be seamlessly integrated into the daily lives of users over the course of time.

OpenAI CEO Sam Altman envisions these devices as a new category of AI companions that transcend traditional interfaces like keyboards and screens. The goal is to create hardware that offers a more intuitive and natural interaction with AI, effectively serving as an “external brain” to assist users in their daily tasks.

Users can anticipate the first such hardware product releasing in 2026, although the specifics of the devices are still being kept under secrecy. Altman has stated that the project has the potential to contribute substantial value to OpenAI and potentially rival the transformative impact of the iPhone and other handheld devices.

This strategic step enables OpenAI to more directly compete with tech giants such as Apple, Google, and Meta, who are all investigating AI-integrated hardware. In the AI era, the partnership seeks to revolutionise the way users interact with technology by integrating OpenAI’s advanced AI capabilities with Ive’s design expertise.