OpenAI has announced its acquisition of io, the AI device startup founded by renowned designer Jony Ive and his creative firm LoveFrom, in an all-equity transaction valued at $6.4 billion. This figure includes OpenAI’s existing investment in the company.
The collaboration between OpenAI CEO Sam Altman and Ive began two years ago, and the startup io was officially launched a year ago with the mission to design and build a new generation of AI-driven hardware products. According to Altman, the upcoming product line will empower users to “create all sorts of wonderful things.” A video message shared by OpenAI suggests that io has already developed a prototype for its debut product, which Altman has personally endorsed.
Under the terms of the deal, io will merge with OpenAI. Ive and the LoveFrom team will assume leading roles in shaping the creative and design direction for both entities, OpenAI said in its statement.
Jony Ive, best known for his work on Apple’s most iconic devices—such as the iPhone, iPad, iPod, and MacBook Pro—has seen his firm LoveFrom take on high-profile design projects for companies like Ferrari and Airbnb.
This acquisition is OpenAI’s most significant to date and follows closely on the heels of its agreement to acquire Windsurf, a startup specializing in AI-assisted coding tools, in a deal reportedly worth around $3 billion. That move comes amid intensifying competition in the AI-assisted programming space, a sector OpenAI has also entered with its own Codex platform, unveiled in a research preview last week.
The tech giant faces increasing competitive pressure from other AI leaders like Google, Anthropic, and Elon Musk’s xAI. At its recent I/O 2025 event, Google showcased a sweeping overhaul of its search engine, integrating a new “AI Mode” for users in the U.S.
OpenAI also recently secured a major funding round led by SoftBank, raising $40 billion and bringing the company’s valuation to approximately $300 billion. Amid these developments, OpenAI is reorganizing as a public benefit corporation and is in talks to amend its long-term agreement with Microsoft to pave the way for a potential IPO while ensuring continued access to its advanced AI technologies.
