The acquisition will see io's team of 55 engineers and designers, many of whom are former Apple employees, join OpenAI. Altman and Ive have been working on a device that aims to move consumers "beyond screens," with the first products expected to debut in 2026. The collaboration could challenge Apple's position in AI, as the company has struggled to keep up with advancements from OpenAI and Google. Meanwhile, other companies like Meta and Google are also exploring AI-powered devices, such as smart glasses.
Key takeaways:
- OpenAI is acquiring the device startup io, co-founded by Sam Altman and Jony Ive, in a deal valued at $6.5 billion, with Ive and his design firm LoveFrom leading creative and design work at OpenAI.
- The acquisition aims to develop AI-powered consumer devices, with the first devices expected to debut in 2026, potentially positioning OpenAI as a competitor to Apple in the consumer hardware space.
- OpenAI already owned a 23% stake in io, and the acquisition marks its largest ever, with plans to integrate io's team of engineers, scientists, and former Apple designers into OpenAI.
- Altman and Ive's collaboration seeks to create devices that move consumers "beyond screens," with the mission to develop a family of AI devices that integrate more seamlessly into everyday life.