OpenAI partners with Jony Ive to develop AI-powered hardware

OpenAI, the creator of ChatGPT, has entered into a landmark $6.5 billion deal to acquire io, a hardware startup founded by former Apple designer Jony Ive. This marks OpenAI's largest acquisition to date and signals its ambitious move into AI-powered physical devices.

Key Details of the Partnership

• The collaboration brings together Sam Altman (OpenAI CEO) and Jony Ive (iPhone designer) to develop a "family of devices" optimized for AI.
• Current devices like laptops and phones are considered outdated for AI applications, prompting the need for new hardware solutions.
• The technology, referred to as "physical AI," aims to integrate AI into tangible objects like robots, wearables, and autonomous vehicles.

Strategic Implications

• Ive's design firm LoveFrom will lead creative and design responsibilities across OpenAI and io.
• The partners plan to publicly showcase their work in 2025, though specific product details remain undisclosed.
• Analyst Chirag Dekate (Gartner) calls this a "decisive step" in shaping end-to-end AI user experiences.

Industry Context

• OpenAI previously invested in Humane, maker of an AI lapel pin.
• The deal accelerates competition in the emerging physical AI space, with multiple companies vying for dominance.

Image: Jony Ive at the Met Gala 2025 (Credit: Evan Agostini/Invision/AP)

This partnership represents a significant convergence of AI technology and iconic product design, potentially reshaping how consumers interact with artificial intelligence in daily life.