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OpenAI is buying Jony Ive’s AI hardware company

by Investor News Today
May 22, 2025
in Technology
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OpenAI is buying Jony Ive’s AI hardware company
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OpenAI is shopping for io, a {hardware} firm based by former Apple design chief Jony Ive and several other different former engineers from his time there, together with Scott Cannon, Evans Hankey, and Tang Tan.

Ive received’t be becoming a member of OpenAI, and his design agency, LoveFrom, will proceed to be unbiased, however they may “take over design for all of OpenAI, together with its software program,” in a deal valued at almost $6.5 billion, Bloomberg studies.

About 55 {hardware} engineers, software program builders, and manufacturing specialists will be part of OpenAI as a part of the acquisition. That features Cannon, Hankey, and Tan. The primary units following the acquisition are set to launch in 2026.

In an interview with Bloomberg, Ive referred to as AI {hardware} misfires just like the Humane Pin and Rabbit R1 “very poor merchandise,” and mentioned that “there was an absence of recent methods of pondering expressed in merchandise.”

The primary product isn’t meant to be an iPhone killer, although: “In the identical manner that the smartphone didn’t make the laptop computer go away, I don’t suppose our very first thing goes to make the smartphone go away,” OpenAI CEO Sam Altman instructed Bloomberg. “It’s a completely new form of factor.”

The Wall Avenue Journal studies that Altman and LoveFrom have been working collectively for 2 years and have thought-about choices like headphones and units with cameras.

The primary product the crew has been engaged on “has simply utterly captured our creativeness,” Ive mentioned in a video.

“Jony lately gave me one of many prototypes of the gadget for the primary time to take residence, and I’ve been capable of stay with it, and I feel it’s the coolest piece of expertise that the world may have ever seen,” Altman mentioned.

“I’m completely sure that we are actually on the point of a brand new technology of expertise that may make us our higher selves,” Ive mentioned.

“We gathered collectively the most effective {hardware} and software program engineers, the most effective technologists, physicists, scientists, researchers and specialists in product improvement and manufacturing,” Ive and Altman mentioned in a joint put up. “Many people have labored intently for many years. The io crew, centered on creating merchandise that encourage, empower and allow, will now merge with OpenAI to work extra intimately with the analysis, engineering and product groups in San Francisco.”

“AI is an unbelievable expertise, however nice instruments require work on the intersection of expertise, design, and understanding folks and the world,” Altman mentioned in a press release. “Nobody can do that like Jony and his crew; the quantity of care they put into each facet of the method is extraordinary.”

“I’ve a rising sense that all the things I’ve discovered during the last 30 years has led me to this second,” Ive mentioned. “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.”

“A lot of us checked out one another and mentioned, ‘That is most likely probably the most unbelievable expertise of our profession,’” Hankey mentioned in an interview with Bloomberg.

Replace, Might twenty first: Added info from The Wall Avenue Journal.



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