OpenAI is entering a new phase in its evolution, making a bold foray into consumer hardware through a multibillion-dollar acquisition of io, a startup co-founded by legendary Apple designer Jony Ive.
This move reflects the company’s growing conviction that the next wave of artificial intelligence innovation will require new, purpose-built devices—ones that go beyond the personal computers and smartphones that have defined the last several decades of digital interaction.
The $6.5 billion all-stock acquisition—the largest in OpenAI’s history—will bring Ive and his team of former Apple design veterans directly into the fold. Ive, who helped shape some of Apple’s most iconic products including the iPhone, iMac, and iPod, will now take on a leading creative role in designing what OpenAI describes as a new class of AI-native hardware.
OpenAI CEO Sam Altman has long argued that transformative platform shifts in technology typically bring with them a new type of computing device. In conversations and appearances—including a promotional video featuring Altman and Ive walking through San Francisco—both leaders stressed that today’s AI technology is being accessed through outdated interfaces.
“We’re still using decades-old products to connect with unimaginable technology,” Ive said.
The rationale behind the deal is rooted in a shared belief that AI—like the internet or cloud computing before it—deserves a dedicated hardware platform. According to Altman, the current methods of interacting with AI tools, such as ChatGPT, are filled with friction. Users must navigate apps, websites, and input prompts manually—processes Altman hopes to streamline with novel AI-native devices.
The 55-person team at io includes a number of high-profile Apple alumni. Co-founders Scott Cannon, Evans Hankey, and Tang Tan played significant roles in the development of the iPhone and Apple Watch. The team, which will now operate within OpenAI under product VP Peter Welinder, has spent the last two years exploring designs for what they believe could be a “family of devices” suited for an AI-first world.
While OpenAI and io have not shared specific details about what the new hardware will look like, reports suggest early prototypes may include wearable devices such as smart headphones or camera-equipped accessories—products designed to keep AI assistants seamlessly integrated into daily life.
OpenAI is not alone in exploring the future of AI-enabled consumer hardware. Meta, Apple, and Google have each begun developing or deploying smart glasses and other AI-enhanced devices. However, some early entries into the space—such as the Humane AI Pin—have faced critical and commercial setbacks.
Despite these challenges, the partnership between Altman and Ive has garnered attention for its ambitious scope and potential. Ive, who was once described by Steve Jobs as his “spiritual partner,” brings a track record of user-centric innovation, while Altman leads a company that has rapidly transformed from a nonprofit lab into a $300 billion AI powerhouse.
The acquisition of io also highlights OpenAI’s strategy to reduce its dependence on rival platforms such as Apple, Google, and Microsoft for software distribution. By developing its own hardware, OpenAI seeks to establish a fully integrated ecosystem—one that combines generative AI with bespoke hardware, tailored interfaces, and user data.
This approach mirrors how Apple created a tightly integrated experience across its devices and services. OpenAI appears to be taking a page from that playbook, with Altman aiming to build a suite of AI-native tools that may one day replace or augment everything from smartphones to search engines, productivity software, and even tax preparation tools.
OpenAI expects to unveil its first hardware product in 2026. While there is little public information about what that product will be, both Altman and Ive have indicated that it will not aim to replace the smartphone, but rather introduce a new category altogether.
“We’re not trying to kill the phone,” said Altman. “It’s a totally new kind of thing.”
Ive added that users will begin interacting with AI in “very new ways,” suggesting a rethinking of how humans relate to technology in daily life.
Axios, the Atlantic, and Bloomberg contributed to this report.
