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Joined December 2024

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Asif Mohammad Sovon

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Joined February 2025

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May 22, 2025

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OpenAI Acquires Jony Ive's Startup io for $6.5 Billion

OpenAI has announced its largest acquisition to date: a $6.5 billion all-stock deal to acquire io, the AI hardware startup founded by renowned former Apple designer Jony Ive. This strategic move marks OpenAI's significant entry into the consumer hardware market, aiming to develop AI-native devices that seamlessly integrate artificial intelligence into daily life.

A Vision for AI-Integrated Hardware

The collaboration between OpenAI CEO Sam Altman and Jony Ive, known for his iconic designs like the iPhone and MacBook, has been in development for over 18 months.

Altman has expressed that the envisioned product is an AI "companion" designed to deeply integrate into daily life, fully aware of users' surroundings and lifestyles, yet tiny, fit for a pocket or desk. Unlike smartphones or wearable glasses, the device represents a new design movement and aims to establish a new core gadget alongside devices like the iPhone and MacBook.

Strategic Implications and Market Impact

The acquisition includes io's team of 55 employees, who will join OpenAI while maintaining operations in San Francisco's Jackson Square. This move not only strengthens OpenAI's hardware capabilities but also reinforces San Francisco's position as a hub for technological innovation.

Investors in io include Emerson Collective, founded by Laurene Powell Jobs, and Thrive Capital. The deal is pending regulatory approval and is expected to close in the summer of 2025.

Following the announcement, Apple's stock experienced a 2% decline, reflecting investor concerns over increased competition in the AI hardware space.

Looking Ahead

The first product from the Altman-Ive collaboration is anticipated to launch in 2026. While specific details remain under wraps, the device is expected to offer a new form of interaction with AI, moving beyond traditional screen-based interfaces. Altman aims to ship 100 million units rapidly, faster than any prior product in tech history.

This ambitious project underscores OpenAI's commitment to integrating AI more deeply into everyday life, potentially reshaping how consumers interact with technology.

What do you think about OpenAI's move into AI hardware? Could this reshape our interaction with technology? Share your opinions in the comments below and stay tuned for more updates on this developing story.

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