In a landmark move that could reshape the future of AI-powered consumer technology, OpenAI has officially acquired ‘io Products, Inc.’, the AI hardware startup co-founded by legendary former Apple design chief Sir Jony Ive, in a $6.5 billion all-stock deal.
This acquisition marks OpenAI’s biggest bet yet on bringing artificial intelligence into physical products, signalling a shift from its traditional focus on software like ChatGPT toward AI-integrated devices designed specifically to enhance human-AI interaction.
A Vision for AI-First Devices
Founded in 2024, io Products was created with the vision of designing intelligent hardware that seamlessly integrates AI into users’ lives. The startup’s team, composed of around 55 former Apple engineers and designers, will now join OpenAI’s San Francisco operations. However, Sir Jony Ive will not become a direct employee of OpenAI. Instead, his design firm, Love From, will remain an independent partner, responsible for leading the design efforts behind OpenAI’s new line of hardware.
According to sources familiar with the project, the first AI-powered “companion device” could be unveiled as early as 2026. These devices are expected to offer a more personal, intuitive, and accessible way to use OpenAI’s models-moving beyond screens and keyboards into a more natural, integrated user experience.
Why This Deal Matters
OpenAI’s acquisition of io Products is not just about hardware-it’s about redefining how AI fits into our daily lives. The partnership with Jony Ive brings world-class design thinking into OpenAI’s ecosystem, potentially giving it an edge over competitors like Apple, Google, Amazon, and Meta, who are also racing to embed AI into hardware.
This move aligns with OpenAI’s broader goal: to own both the intelligence (AI models) and the interface (devices). By controlling the physical platforms through which AI is accessed, OpenAI hopes to offer a more seamless and immersive user experience.
Temporary Setback, Now Resolved
Interestingly, the announcement of the acquisition had to be temporarily pulled from public view due to a trademark dispute over the name “io”. However, that issue has now been resolved, and the deal has been made public again without any legal hurdles.
What Comes Next?
With this acquisition, OpenAI is clearly signalling its ambitions to shape the next generation of AI experiences-not just through apps and APIs, but through tangible, beautifully designed products that can live in users’ hands, homes, and routines.
As we await further details on what these new AI companion devices will look like, one thing is certain: the collaboration between OpenAI and Jony Ive is set to become one of the most closely watched partnerships in the tech world.
