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The Tech Basic > News > OpenAI Bets Big on Hardware With Acquisition of Jony Ive’s Startup
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OpenAI Bets Big on Hardware With Acquisition of Jony Ive’s Startup

Salman Akhtar
Last updated: 22 May 2025 15:53
Salman Akhtar
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Image Source:The Wall Street Journal
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OpenAI, the company behind ChatGPT, just made a huge move. It bought a hardware startup called io, started by Jony Ive, the famous designer who created the iPhone and iPad. The deal is worth $6.5 billion and will let OpenAI build new AI gadgets that could change how we use technology every day.

Jony Ive will not work directly for OpenAI, but his design team, LoveFrom, will help design OpenAI’s future products. About 55 engineers and designers from io will join OpenAI to work on these new devices. The first products are expected to come out in 2026.

OpenAI
Image Source: OpenAI

What This Deal Means for Everyone

Sam Altman and Jony Ive Have Big Plans

Sam Altman, the CEO of OpenAI, and Jony Ive have been working together for two years. They want to make AI devices that feel natural and easy to use. Altman said one of their prototypes is “the coolest piece of technology the world will have ever seen.” Ive added that this partnership is the most important work of his career.

Learning From Past Mistakes

Jony Ive did not hold back when talking about recent AI gadgets like the Humane Pin and Rabbit R1. He called them “very poor products” because they were hard to use or did not work well. His team wants to avoid these problems by focusing on simpler, smarter designs.

A New Kind of Device

The first device from OpenAI and Ive’s team will not replace your phone. Altman said, “Just like smartphones did not kill laptops, our first product will not kill smartphones.” Instead, they are making something totally new. Reports say it could be something like smart headphones or a camera tool that works with AI.

Why People Are Excited About This Team

The Best Minds in Tech and Design

Jony Ive brought together engineers, designers, and experts from his Apple days. This includes Scott Cannon, Evans Hankey, and Tang Tan, who worked on iPhones and other Apple products. OpenAI’s AI experts will team up with them to blend smart software with beautiful hardware.

Making Technology Help People

Altman said, “Great tools need great design and a deep understanding of people.” Ive agreed to add “This is about creating tools that make us better.” The team wants to build devices that feel helpful, not complicated. For example, instead of typing questions into ChatGPT, you might talk to a small device that understands your needs.

Challenges Ahead

Building AI hardware is not easy. Many startups fail because their devices have short battery life or confusing features. But Ive’s experience at Apple gives hope. He knows how to make products people love. Plus, OpenAI’s ChatGPT can make these gadgets smarter than anything before.

Investors are watching closely. When the deal was announced, Apple’s stock dropped 2%, showing that even big companies see OpenAI as a threat. But Altman and Ive believe their partnership is special. “We are literally on the brink of a new generation of technology,” Ive said.

OpenAI
Image Source: CTech

The Big Question Everyone Is Asking

Will this new device be as big as the iPhone? No one knows yet. But the team is confident. Evans Hankey, a designer who worked with Ive at Apple, said, “This is probably the most incredible technology of our career.”

The first products arrive in 2026. Until then, people will keep using phones and laptops. But if OpenAI and Ive succeed, we might soon have AI tools that feel like magic. As one engineer put it, “This is not just another gadget. It is the future.”

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Salman Akhtar
By Salman Akhtar
View enlightening tech pieces written by S. Dyemazandria. Keep up with the most recent news, advice, and trends in the field of technology.

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