According to the Wall Street Journal, CEO Sam Altman, Apple Designer Jony Ive has acquired IO, a device startup that has been quietly working on two years. As part of a rare deal announced Wednesday, Ive and his design company Lovefrom will lead creative and design jobs at Openai.
“I’m excited to be partnering with Johnny (in my opinion) – the greatest designer in the world,” Altman said in a post Wednesday. “We’re excited to create a new generation of AI-powered computers.”
With the collaboration between Openai and Ive, one of Apple’s previous design heads (known for creating many iPhones, iPods, iPads and Apple Watches) will be at the forefront of the latest technology waves, Generative AI. Since the launch of ChatGPT in 2022, Openai has significantly increased its consumer business. Earlier this month, the company appointed former META executive and Instacart CEO Fidji Simo to lead consumer applications.
ive can help Openai compete directly with Apple in the consumer hardware space, putting even more pressure on iPhone manufacturers. In recent years, Apple has struggled to develop AI features that keep up with Openai and Google’s latest technology. Apple’s shares fell 2% on Wednesday after the Openai and Ive collaboration was announced.
IO has a staff of approximately 55 engineers, scientists, researchers, physicists and product development specialists, following the Wall Street Journal. Many of IO’s employees are former Apple designers, including Scott Cannon, Evans Hankey and Tang Tan, who help build the company’s most iconic products.
Ive maintains control of his design company Lovefrom.
Under Openai, IO will develop AI-powered consumer devices and other projects. Altman and Ive are reportedly working on devices that move consumers “beyond the screen.” Bloomberg reports that Ive and Altman’s first devices are expected to debut in 2026. The WallStreet Journal reports that Ive will play an expanding role and will give his opinion on future versions such as ChatGpt.
According to the New York Times, Openai already had a 23% stake in IO as part of a company agreement last year. This means Openai will pay $5 billion to fully acquire IO, marking the biggest acquisition of ChatGpt makers. The Openai Startup Fund reportedly made separate investments in IO last year.
In a video posted by Openai, Altman said the mission of IO is to create a family of AI devices that can use AI to produce “all kinds of great things.” Ive said he is confident that everything he learned has “leaned me to this place and this moment over the last 30 years.” The first AI device IO is working on “completely captured” Ive’s imagination, he said.
The world of AI devices is still in its early stages. Altman was an early investor at Humane, another AI hardware company founded by former Apple employees, and created an AI-powered “PIN.” After a series of trips, Humane was sold to HP, and the device was sunk.
Meanwhile, other form factors for AI devices show more possibilities. Meta’s AI-powered smart glasses, which are developing in the huge Essel Luxottica of eyewear, achieves strong sales and adoption among consumers. This week, Google announced a version of AI smart glasses that is developing alongside Samsung, Warby Parker and other partners.
Ultimately, it is unclear what the Openai device will take. Later in the video, Altman noted that using a laptop or smartphone to access ChatGpt is too cumbersome. Instead, Openai’s CEO suggested using a device that is more integrated than his daily life
This information was first reported on Openai’s discussion to obtain IO in March. At the time, it was said that the two companies were debating the construction of devices that would bring a vibrant version of technology from the film “Her.”