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OpenAI Acquires iPhone Architect's Startup for $6.4 Billion

The Guardian

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Date Published
20 May 2025
Priority Score
3
Australian
No
Created
21 May 2025, 07:58 pm

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The untested hardware startup, called io, was founded by Apple design guru Jony Ive

Summary

OpenAI's acquisition of Jony Ive's hardware startup, io, for $6.4 billion marks a significant expansion into hardware for the AI research company. Although io has not launched any products yet, the merger points towards OpenAI's strategic direction to integrate AI into physical devices, aligning with its broader efforts in robotics and hardware. This move has substantial implications for the AI safety landscape, as it highlights the growing interplay between advanced AI models and real-world applications, potentially raising new safety and governance challenges. The partnership between OpenAI and a renowned designer like Ive aims to enhance the aesthetic and functional design of AI products, indicating a future where AI may significantly influence consumer electronics. Though the article does not focus directly on catastrophic AI risks, the expansion into the physical domain underscores the importance of robust safety and ethical frameworks as AI technologies advance globally.

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Sam Altman and Jony Ive.Composite: Getty ImagesView image in fullscreenSam Altman and Jony Ive.Composite: Getty ImagesOpenAI buys iPhone architect’s startup for $6.4bnThe untested hardware startup, called io, was founded by Apple design guru Jony IveOpenAIis buying an untested startup for $6.4bn, theChatGPTmaker’s biggest acquisition yet. The hardware startup, called io, was founded by Apple design guru Jony Ive, known best as one of the principal architects of the iPhone. Ive and OpenAI’s CEO, Sam Altman, said in ablog postthat their partnership has been two years in the making.“A collaboration built upon friendship, curiosity and shared values quickly grew in ambition,” they wrote in the blog post, which offered scant details on upcoming devices. “Tentative ideas and explorations evolved into tangible designs.”OpenAI’s purchase of io is its biggest known acquisition yet. Ive and a cohort of otherApplealumni founded io one year ago, according to the blog post. It is part of Ive’s bigger project called LoveFrom, which describes itself as a “creative collective” made up of architects, artists, engineers, various types of designers, musicians and writers.Ive left Apple in 2019 after a 27-year career as one of the company’s foremost product designers. He’s known forsimple and clean aestheticsthat pay attention to small details like packaging and font. One of his early famous designs was the brightly colored bubble-shaped iMac computer. From there, he went on to design the first iPod, iPhone, MacBook Air, Apple Watch and AirPods.For his work on creating such distinctive products, Ive wasknighted by Princess Anneat Buckingham Palace in 2012, a moment he called “thrilling” and “particularly humbling”.In Altman and Ive’s blog post on Wednesday, they wrote that the io team will merge with OpenAI to work “more intimately with the research, engineering and product teams in San Francisco”. Ive himself will not join OpenAI as an employee, but his company will “take over design for all of OpenAI, including its software”, according toBloomberg.Since leaving Apple and starting LoveFrom, Ive has mostly remained quiet, and io has not debuted any hardware. His company’s list of clients reportedly includes Christie’s, Airbnb and Ferrari, though. Another project Ive has been working on is LoveFrom’s headquarters in San Francisco, according to theNew York Times. Ives told the paper he is designing the headquarters of the company he is developing with OpenAI.OpenAI has likewise yet to unveil a hardware device, but it has indicated it is heading in that direction. It has hired hardware and robotics staff, including Caitlin “CK” Kalinowski, who headed Meta’saugmented reality glassesinitiative. In her LinkedIn announcement, Kalinowski wrote that her new role at OpenAI is to focus on “robotics work and partnerships to help bring AI into the physical world”. OpenAI has also invested in the robot startupPhysical Intelligence, which aims to bring “general-purpose AI into the physical world”.Investors have been throwing money at OpenAI over the past couple of years, which is now valued at $300bn, according to Bloomberg. In March, it closed a funding round of $40bn led by the Japanese conglomerate SoftBank. Microsoft has a 49% stake in the AI company after investing $13bn in 2023.skip past newsletter promotionafter newsletter promotionAlong with io, OpenAI moved to make other mammoth acquisitions over the last year. It purchased the AI-assisted coding tool Windsurf for $3bn earlier this month and bought the real-time analytics database Rockset for an undisclosed sum last summer.Explore more on these topicsTechnologyArtificial intelligence (AI)AppleComputingWest CoastnewsShareReuse this content