What happened?
OpenAI acquired the AI hardware startup io founded by Apple's former design chief Jony Ive in an all-stock deal worth $6.4 billion.
The products created by Ive helped Apple rise from the brink of bankruptcy to the highest valued company in the world. After leaving Apple, he founded io, focusing on developing AI hardware products.
According to OpenAI, the first batch of new devices designed by the io team and LoveFrom is expected to be released in 2026. Reports suggest that these prototype devices may be wearable devices.
OpenAI acquires AI hardware startup io
Recently, OpenAI announced the formal acquisition of the AI hardware startup io founded by legendary Apple designer Jony Ive in an all-stock deal worth $6.4 billion.
While serving as Apple's design chief, Ive created iconic products like the iMac, iPod, iPhone, and Apple Watch, helping Apple rise from the brink of bankruptcy to the highest valued company in the world. After leaving Apple in 2019, he established the independent design studio LoveFrom, serving renowned brands such as Airbnb and Moncler.
A year ago, Ive and several former Apple colleagues, Scott Cannon, Evans Hankey, and Tang Tan, founded a startup called io in San Francisco, focused on developing wearable hardware products that integrate AI. According to reports, io has been maintaining a low-profile collaboration with OpenAI, and now that the two have officially merged, the 55 employees of the io team, including hardware and software engineers, will be fully integrated into OpenAI's operational system.
Entering the AI hardware field to create wearable devices
This acquisition signifies OpenAI's official entry into the AI hardware field. OpenAI CEO Sam Altman stated in a video that the products we currently use are actually legacies from decades ago. Today, we should reimagine the way people interact with technology.
Altman shared that he had tried out io's prototype products, stating, 'This is the coolest technology product I've ever seen.' Reports suggest that these prototype devices may be wearable devices, promising to break free from the traditional frameworks of mobile phones and keyboard computers to create a new mode of interaction. Altman further pointed out that OpenAI's goal is to create a series of devices that completely reimagine how people view computers.
In contrast, Ive's former employer Apple has been relatively conservative in its AI initiatives in recent years. Even with the launch of the 'Apple Intelligence' feature, there have yet to be clear consumer applications. According to reports, Apple’s stock price fell more than 2% after news of OpenAI's acquisition of io broke.
Ive admitted in a statement that the experiences of the past 30 years seem to have been preparing him for this moment. He feels both nervous and excited about the responsibilities of the future, but is also very grateful to be part of it.
According to OpenAI, the first batch of new devices designed by the io team and LoveFrom is expected to be released in 2026. This collaboration between Ive and Altman is not just a business merger, but the starting point for bringing AI consumer hardware products into everyday life.
Source: BBC, Decrypt
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