OpenAI has made headlines with its recent acquisition of Jony Ive's AI startup, "io," for a whopping $6.5 billion in an all-stock transaction. This strategic move by OpenAI signals a shift towards hardware development, marking their largest acquisition to date. The deal is set to be finalized later this summer pending regulatory approval.
Around 55 employees from Jony Ive's "io" firm will be joining the OpenAI team to collaborate on AI-powered devices. The inaugural product resulting from this partnership is slated for release in 2026. The collaboration between OpenAI and Ive's "io" firm has been in the works for the past two years.
Jony Ive's "io" startup, a part of LoveFrom - Ive's independent creative design company established in 2019, was co-founded last year by Ive in conjunction with former Apple engineers Scott Cannon, Evans Hankey, and Tang Tan.
A joint interview/announcement video featuring Ive and OpenAI CEO Sam Altman discussing the development of a "family of devices" has been posted by OpenAI. Further details on the products remain undisclosed in the nearly 10-minute video.
According to a Wall Street Journal report (paywalled), the initial hardware offering from OpenAI will be a "pocket-sized, contextually aware, and screen-free device." Not fitting the mold of smart glasses or any other wearables, this device will possess full awareness of the user's surroundings. Described as a third-core device, it is intended to complement laptops and smartphones.
