One of the most high-profile and unexpected moves in the tech world is happening. The legendary head of design at Apple, Jony Ive, has joined OpenAI. As part of a deal worth around $6.5 billion, OpenAI acquired the startup io, co-founded by Ive. This is the company’s largest acquisition to date and a clear sign that OpenAI is preparing to expand far beyond software, aiming to create physical devices powered by artificial intelligence, reports digitalbusiness.kz.
A Blow to Apple
The io team consists of more than 50 engineers and designers, many of whom worked on iconic products like the iPhone, Apple Watch, and iPad. In simple terms, OpenAI now has a fully-fledged hardware development division, enabling it to create innovative gadgets that could transform how people interact with technology.
Market Reaction
Apple’s stock dropped 1.8% following the news, reflecting market concerns over the loss of a key and talented leader. Meanwhile, OpenAI is quickly evolving from a research lab into one of the most valuable tech players in the world, with a valuation of around $300 billion.
Details about new products remain under wraps, but sources from The Wall Street Journal reveal that OpenAI has been collaborating with Ive’s design firm, LoveFrom, for two years on a device that will “take consumers beyond screens.” Potential new products include screenless gadgets, AI-powered wearable devices, and context-aware assistants based on cameras. The first such devices are expected to launch in 2026.
OpenAI CEO Sam Altman told Bloomberg that these developments are not intended to replace smartphones but will create an entirely new class of technologies with an unprecedented level of innovation.
— “It’s a crazy, ambitious project, but it’s worth it,” Altman admitted.
Jony Ive and Apple
With the deal with OpenAI, Ive has officially ended his collaboration with Apple. After leaving the company in 2019, he continued working with Apple as an independent contractor through his own studio, LoveFrom. Now, with his move to OpenAI and the launch of a new AI-device project, this partnership is formally over.
Ive will be developing a fundamentally new AI-based device, making his alliance with OpenAI potentially competitive to Apple.
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