bySofia Chesnokova
OpenAI has completed its largest acquisition by purchasing Jony Ive’s hardware startup, io, for $6.5 billion in an all-equity deal. This collaboration unites one of the tech industry’s most celebrated designers with a leading artificial intelligence firm, signalling a major shift toward consumer AI hardware.
The deal, announced on May 21, 2025, represents OpenAI’s biggest acquisition. The company will invest $5 billion in equity to acquire the remaining 77%, building on its 23% stake from earlier collaboration. This partnership brings together OpenAI CEO Sam Altman and Ive, whose three-decade tenure at Apple produced iconic designs like the iPhone, iPad, and MacBook.
“Thrilled to be partnering with Jony, in my opinion the greatest designer in the world,” said Altman on X after the announcement. “Excited to try to create a new generation of AI-powered computers.”
This acquisition highlights OpenAI’s expansion beyond software into specialised AI hardware, potentially creating an entirely new category of devices optimised for AI interactions. The move aligns with OpenAI’s rapid growth, following funding that values the company at approximately $300 billion.
Critics on Reddit and investor forums have questioned the valuation metrics, given io’s pre-revenue status. However, insiders point to the firm’s $200 million annual design consultancy revenue through LoveFrom (Ive’s creative collective) to validate its economic potential.
The deal’s financial structure is particularly noteworthy: The all-equity arrangement preserves OpenAI’s cash reserves while giving io’s team a stake in OpenAI’s future growth, indicating confidence in the partnership’s long-term value.
io: A design-led AI hardware venture
Founded a year ago, io emerged from two years of quiet collaboration between Ive and Altman. Despite having no products or direct revenue, the startup has secured a remarkable valuation through its unique position and exceptional team.
The 55-person team includes several former Apple designers and executives, including Scott Cannon, Evans Hankey (Ive’s brief successor at Apple), and Tang Tan. This group represents some of tech’s most respected hardware designers. Reports suggest the io team has already developed early prototypes combining tactile materials, modular components, and ambient sensing, pointing toward a device potentially as revolutionary as the original iPhone.
“It became clear that our ambitions to develop, engineer and manufacture a new family of products demanded an entirely new company,” wrote Ive and Altman in a joint letter on OpenAI’s website. This insight led to io’s creation, aligning with OpenAI’s strategic vision.
