OpenAI to Purchase Io, Plans Client AI {Hardware} Push
OpenAI has introduced plans to accumulate io, a man-made intelligence {hardware} startup co-founded by former Apple design chief Jony Ive, in an all-stock transaction valued at practically $6.5 billion. The deal, OpenAI’s largest up to now, is geared toward making a devoted division for the event of AI-powered shopper gadgets.
The acquisition will deliver to OpenAI a staff of roughly 55 {hardware} engineers, software program builders, and manufacturing specialists. The io staff consists of a number of high-profile former Apple staff who performed key roles in designing landmark merchandise such because the iPhone, iPad, and MacBook.
“Two years in the past, Jony Ive and the inventive collective LoveFrom, quietly started collaborating with Sam Altman and the staff at OpenAI,” the corporate mentioned in a press release. “A collaboration constructed upon friendship, curiosity and shared values rapidly grew in ambition. Tentative concepts and explorations advanced into tangible designs.”
“What it means to make use of expertise can change in a profound manner,” Altman mentioned. “I hope we are able to deliver a number of the delight, surprise and inventive spirit that I first felt utilizing an Apple Laptop 30 years in the past.”
OpenAI, which developed the ChatGPT chatbot and now holds a valuation of roughly $300 billion, initially acquired a 23% stake in io by means of a partnership shaped in late 2024. That association additionally included funding from OpenAI’s startup fund. Different traders in io embody Emerson Collective, Sutter Hill Ventures, Thrive Capital, Maverick Ventures, and SV Angel. OpenAI clarified that Altman holds no fairness in io.
The acquisition is predicted to shut this summer season, topic to regulatory approval. Put up-acquisition, io will proceed to function from its San Francisco headquarters and can collaborate intently with OpenAI’s current product groups. The hassle will likely be led by OpenAI Vice President of Product Peter Welinder, who will oversee growth of the brand new {hardware} lineup.
“I’ve a rising sense that all the things I’ve realized over the past 30 years has led me to this second,” Ive mentioned. “Whereas I’m each anxious and excited concerning the accountability of the substantial work forward, I’m so grateful for the chance to be a part of such an vital collaboration. The values and imaginative and prescient of Sam and the groups at OpenAI and io are a uncommon inspiration.”
Ive and Altman have reportedly been exploring product ideas collectively for the previous two years. The preliminary output of their collaboration is projected for launch in 2026. Whereas particular product particulars stay undisclosed, the partnership is predicted to give attention to novel computing kind components optimized for AI-first interplay, distinct from conventional smartphones or laptops.
Ive’s design agency LoveFrom will stay an unbiased entity however will assume accountability for the design of OpenAI’s software program and {hardware} merchandise. The agency consists of a number of designers who beforehand contributed to Apple’s {hardware} and consumer interface aesthetics. LoveFrom will keep current relationships with purchasers akin to Ferrari NV and Airbnb Inc., however won’t have interaction in new large-scale partnerships.
The partnership between OpenAI and io marks a strategic growth into what business analysts describe as “bodily AI” — the mixing of synthetic intelligence into shopper gadgets able to sensing and responding to real-world environments. Competing corporations akin to Meta Platforms Inc. and Humane have additionally entered this area, although current AI {hardware} launches have acquired blended opinions.
In regards to the Writer
John K. Waters is the editor in chief of quite a lot of Converge360.com websites, with a give attention to high-end growth, AI and future tech. He is been writing about cutting-edge applied sciences and tradition of Silicon Valley for greater than two many years, and he is written greater than a dozen books. He additionally co-scripted the documentary movie Silicon Valley: A 100 Yr Renaissance, which aired on PBS. He might be reached at [email protected].
