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The AI revolution is no longer confined to software—it’s heading into the world of physical devices. In a bold and high-stakes move, OpenAI announced it will acquire the remaining shares of io.

The firm will take control of the startup co-founded by former Apple design chief Jony Ive, in a $5 billion stock deal. 

Investment in the AI Revolution

This marks one of the most significant investments in AI-driven hardware yet, and signals OpenAI's commitment to creating consumer devices that transcend traditional smartphones and computers.

With this acquisition, OpenAI hopes to define the next era of computing, powered by artificial intelligence and designed by one of tech’s most iconic creatives.

“Something Beyond These Legacy Products”

Jony Ive, who led the design of the iPhone, MacBook, and other Apple mainstays, has been collaborating with OpenAI CEO Sam Altman. They are coordinating on an undisclosed hardware project under the startup name io.

In an OpenAI promotional video, the two are seen walking through San Francisco’s North Beach before sitting down at Zoetrope Café.

“We’re still using decades-old products to connect with unimaginable technology,” Ive said, referring to PCs and smartphones.

“So, it’s just common sense to work on something beyond these legacy products.”

 Watch OpenAI and Ive’s collaboration unfold

Strategic Details of the Deal

• OpenAI already owned 23% of io due to an exclusive partnership signed in late 2024.
• The remaining stake is being acquired for $5 billion in stock.
• The io team, made up of 55 employees, will join OpenAI under the leadership of Peter Welinder.
• Caitlin Kalinowski, a former Meta executive, will continue leading OpenAI’s hardware and robotics team.

 Read about Kalinowski's role at OpenAI

LoveFrom, Jony Ive’s design firm, will continue operating independently but will play a major design role in OpenAI’s hardware initiatives.

What Devices Might Be Coming?

Though little has been confirmed, reports suggest io may be working on devices such as “headphones and other devices with cameras”, according to The Wall Street Journal. Sam Altman has said it won’t be a smartphone.

This effort follows Altman’s earlier forays into blending AI with physical products:

• He was an early investor in Humane’s AI Pin, a wearable AI assistant that ultimately flopped.
  More on Humane’s AI Pin
• He is co-founder of Worldcoin, a company deploying orb-shaped biometric devices to verify human identity.
  More on Worldcoin’s biometric rollout

At OpenAI’s developer conference last year, Altman told Axios, “Major platform shifts usually usher in a new type of computing device. If there's something amazing to do, we'll do it.”

The Race Beyond Smartphones

OpenAI’s move comes as other tech giants are also racing to shape the post-smartphone future:

• Meta’s Ray-Ban Smart Glasses have introduced lightweight AI interfaces in a wearable format.
  Check out Meta's Smart Glasses
• Google has demonstrated AR glasses with embedded displays.
• Apple is reportedly working on augmented-reality glasses as a long-term successor to the iPhone.

Despite early skepticism in the metaverse space, these new device formats signal a maturing vision for how AI might live beyond our screens.

What’s Next?

OpenAI says it will reveal the first results of its hardware collaboration in 2026, though it hasn’t guaranteed a product launch timeline.