In May 2025, OpenAI, led by CEO Sam Altman, made its largest acquisition to date by purchasing the AI hardware startup io, founded by former Apple design chief Jony Ive, for $6.5 billion in an all-equity deal. This strategic move marks OpenAI’s significant entry into consumer hardware, aiming to develop AI-integrated devices that go beyond traditional screen-based interfaces.
The collaboration between Altman and Ive focuses on creating a new category of AI-powered devices. These devices are designed to be sleek, contextually aware, and seamlessly integrated into daily life without relying on screens or wearables. The first product, expected to launch by late 2026, is envisioned as a “third core device,” complementing smartphones and laptops. OpenAI plans to produce up to 100 million units of this device, positioning it as a potential game-changer in technology.
The acquisition has attracted significant attention, with some analysts speculating that the partnership could add up to $1 trillion in value to OpenAI. However, some industry experts remain cautious due to the ambitious nature of developing a completely new consumer device category.
This move highlights OpenAI’s commitment to expanding beyond software into hardware, aiming to create integrated AI solutions that redefine user interaction with technology. By combining Jony Ive’s design expertise with OpenAI’s AI capabilities, the partnership aims to set new industry standards and potentially disrupt existing market dynamics.
As OpenAI advances this innovative device, the tech world is watching closely to see how it will shape the future of AI and consumer electronics.
