OpenAI acquires Apple veteran Jony Ive’s startup for $6.5bn

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OpenAI is buying a startup called io, which was secretly co-founded by OpenAI’s CEO Sam Altman and famous former Apple designer Jony Ive.

The deal, worth $6.5 billion, will be paid entirely in company shares. As part of this deal, Ive and his design firm, LoveFrom, will now lead the design and creative work at OpenAI.

Jony Ive is well known for designing many of Apple’s most iconic products, like the iPhone, iPod, and Apple Watch. 

Now, he’s teaming up with OpenAI to help create “the next generation of technology.” This move could allow OpenAI to compete more directly with Apple, especially in the hardware space. 

In fact, after the news broke, Apple’s stock dropped by 2%, showing investors are paying attention. (via: TechCrunch) 

Io is a small but talented company with around 55 people, many of whom are former Apple employees. These include top designers and product experts who helped create some of Apple’s most successful devices. 

They’re all joining OpenAI. Ive’s design company, LoveFrom, will stay independent but continue working closely with OpenAI.

Under OpenAI, io will focus on AI-powered consumer devices. Altman and Ive are working on a new type of product that doesn’t rely on screens. 

Instead, it will be a small, smart device that understands its user’s surroundings. It could sit on a desk or fit in a pocket and is meant to be a kind of AI companion, a device you use alongside your phone or laptop. This product is expected to launch in 2026.

Altman believes this new product could be so revolutionary that it adds $1 trillion in value to OpenAI. 

But he also stressed that the project must stay secret, warning his team to be careful about leaks, especially since some information about his comments had already made it to the press.

Do you think this acquisition is worth the price tag? Or do you think there is a bigger play being made here? We want to hear from you below in the comments, or via our Twitter or Facebook.