OpenAI has moved to buy io, an AI hardware startup owned by former iPhone designer Jony Ive.
io as a part of OpenAI marks an "extraordinary moment" in the expanding AI sphere.
OpenAI acquires 'io' for $6.4 billion
The acquisition of the AI startup occurs in an all-stock deal valued at around $6.4 billion, marking the largest takeover of OpenAI in history.
It is pertinent to mention that the deal brings in OpenAI’s existing 23% stake in io, with $5 billion accounting for the transaction.
According to Reuters, OpenAI CEO Sam Altman praised Ive, calling it “the greatest designer in the world” while outlining its purchase price.
Over a year ago, io was launched by Ive and former Apple officials, including Scott Cannon, Tang Tan, and Evans Hankey.
However, the AI company will fall under the belt of OpenAI, Ive will manage key creative and design roles at both OpenAI and io.
The new io team is set to partner in OpenAI’s wide-ranging research, engineering and product teams in San Francisco, aiming to generate inspiring, and empowering products.
OpenAI’s acquisition follows its latest $3 billion procurement of the AI-powered coding tool Windsurf and its purchase of analytics company Rockset in 2024.
