OpenAI has officially closed its largest acquisition to date, finalizing a $6.5 billion USD (about $8.9 billion CAD) all-stock deal to acquire io, the secretive AI device startup co-founded by famed former Apple design chief Jony Ive.
The acquisition, first announced back in May, faced delays due to regulatory review but has now been completed, according to Bloomberg. The deal gives OpenAI a dedicated hardware division — a major step toward its ambitions in AI-powered devices — and secures the services of Ive and a team of veteran designers responsible for some of Apple’s most iconic products, including the iPhone and MacBook.
Ive, widely regarded as one of the most influential designers in tech history, spent nearly three decades at Apple, shaping the company’s design language before departing in 2019. He later co-founded io alongside support from Laurene Powell Jobs, the widow of Apple co-founder Steve Jobs, who helped fund the venture.
While io has operated in stealth mode for most of its existence, reports suggest the startup is working on a screenless AI wearable designed to provide contextual, voice-driven assistance. OpenAI and io are reportedly aiming to launch the device by 2027.
Interestingly, the deal also encountered some turbulence in June, when OpenAI pulled promotional materials from its website after facing a trademark dispute over the io name. A spokesperson for Ive called the dispute “utterly baseless.”
With this acquisition, OpenAI is signaling its intent to move beyond software like ChatGPT and into consumer hardware — potentially setting the stage for a new category of AI-first devices.
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