OpenAI to Purchase Io, Plans Client AI {Hardware} Push
OpenAI has introduced plans to amass io, a synthetic 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 to this point, is geared toward making a devoted division for the event of AI-powered shopper units.
The acquisition will carry to OpenAI a crew of roughly 55 {hardware} engineers, software program builders, and manufacturing specialists. The io crew contains 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 artistic collective LoveFrom, quietly started collaborating with Sam Altman and the crew at OpenAI,” the corporate stated in an announcement. “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 know-how can change in a profound approach,” Altman stated. “I hope we will carry a number of the delight, surprise and inventive spirit that I first felt utilizing an Apple Pc 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 way of a partnership fashioned in late 2024. That association additionally included funding from OpenAI’s startup fund. Different buyers in io embrace 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 time, topic to regulatory approval. Publish-acquisition, io will proceed to function from its San Francisco headquarters and can collaborate intently with OpenAI’s present product groups. The trouble might 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 every part I’ve realized over the past 30 years has led me to this second,” Ive stated. “Whereas I’m each anxious and excited concerning the duty of the substantial work forward, I’m so grateful for the chance to be a part of such an essential 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 deal with novel computing type elements optimized for AI-first interplay, distinct from conventional smartphones or laptops.
Ive’s design agency LoveFrom will stay an impartial entity however will assume duty for the design of OpenAI’s software program and {hardware} merchandise. The agency contains a number of designers who beforehand contributed to Apple’s {hardware} and person interface aesthetics. LoveFrom will keep present relationships with purchasers equivalent to Ferrari NV and Airbnb Inc., however won’t interact in new large-scale partnerships.
The partnership between OpenAI and io marks a strategic enlargement into what trade analysts describe as “bodily AI” — the combination of synthetic intelligence into shopper units able to sensing and responding to real-world environments. Competing corporations equivalent to Meta Platforms Inc. and Humane have additionally entered this area, although latest AI {hardware} launches have acquired blended opinions.
Concerning the Creator
John K. Waters is the editor in chief of various Converge360.com websites, with a deal with 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 will be reached at [email protected].