In a shake-up for the consumer tech world, OpenAI has acquired io, the secretive device startup co-founded by CEO Sam Altman and prestigious designer Jony Ive, in a deal valued at $6.5 billion. The acquisition brings Ive and his design firm, LoveFrom, on a transaction based on equity, not cash, into OpenAI’s core team. For a company that has largely lived in the cloud, this marks a bold leap into the hardware space.
The move is more than just a top executive hire. It places one of the world’s most influential industrial designers—partially responsible for the iPhone, iPad, and Apple Watch—at the helm of the AI revolution’s next big chapter. Altman has made it clear the goal is to build a new generation of AI-powered computers.
This suggests OpenAI isn’t just thinking about smarter apps but entirely new forms of computing. The first product could debut as early as 2026. The whole Io’s team, which includes former Apple talents like Scott Cannon and Evans Hankey and other 53 people, will now join OpenAI.
A new era for gadgets
Altman hinted at his vision in a recent video, saying the aim is to move past clunky laptops and smartphones toward something more intuitive—like “wereable” devices that can easily blend into everyday life. It’s an ambitious swing, especially in a space where others, like Humane, have stumbled.
While Meta’s AI glasses and Google’s latest prototypes show that form factors beyond the smartphone can work, they’ve yet to go mainstream. What OpenAI and Ive are proposing is even more radical—technology that blends seamlessly into the human experience. If they can pull it off, they might just redefine the way we use AI: not as a tool, but as a constant companion.
The implications for Apple are serious. For years, the iPhone maker has struggled to keep up with the pace of AI development from rivals like OpenAI and Google. Ive’s shift to OpenAI—and the exodus of other top Apple designers to io—throws that gap into sharp relief. The market has noticed: Apple’s shares dipped 2% following the announcement.
