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OpenAI enters hardware with Jony Ive’s company purchase

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OpenAI cuts Microsoft’s revenue share
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Athira Sethu

Kochi, 22 May 2025

OpenAI, the firm that developed ChatGPT, is venturing into the hardware sector. On Wednesday, OpenAI said it is acquiring a firm named io, founded by Jony Ive, for approximately $6.4 billion.

The acquisition is significant because Jony Ive is a well-known designer. He was part of the team that designed some of Apple’s most popular products such as the iPhone, iPad, iPod, and MacBook Air. He also came up with the design of Apple’s headquarters, Apple Park.

What is io?

io is a company founded one year ago by Ive and a few former employees of Apple. They include Scott Cannon, Tang Tan, and Evans Hankey, who formerly assumed Ive’s position at Apple. Io was developing intelligent devices that could closely collaborate with artificial intelligence (AI).

OpenAI announced the io team would now become part of its core team in San Francisco. They will assist in creating new AI-enabled hardware products.

Who is Jony Ive?

Jony Ive departed Apple in 2019 to begin a design firm named LoveFrom. LoveFrom has serviced major clients such as Airbnb, Christie’s, and Ferrari. Reports indicate clients pay the company as much as $200 million annually for design services.

Though OpenAI is acquiring io, Ive’s design firm LoveFrom will remain independent. Still, Ive will play a significant design role for both OpenAI and io. OpenAI CEO Sam Altman stated that he believes Ive is “the greatest designer in the world.”

Why is OpenAI doing this?

OpenAI is attempting to develop rapidly. It wishes to maintain the lead over other firms such as Google, xAI, and Anthropic to become the most superior AI. To achieve this, it must develop hardware products, not merely software.

Recently, OpenAI also acquired a software coding firm known as Windsurf and a database firm known as Rockset. It has also funded robot firms such as Physical Intelligence, which received backing from Jeff Bezos, the Amazon founder.

To spearhead its robotics and hardware initiatives, OpenAI has also appointed Caitlin Kalinowski, who previously worked at Meta (Facebook).

This massive deal demonstrates that OpenAI is not only interested in software such as ChatGPT. It wants to get its AI into real-world products, and with Jony Ive’s design acumen, it might create the next generation of intelligent products.

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