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OpenAI acquires Jony Ive’s io startup for $6.5 billion, signaling a bold move into AI hardware. Discover how this partnership aims to redefine human-AI interaction with a revolutionary, screenless device set to launch by 2026.
OpenAI and Jony Ive Forge a New Era in AI Hardware
OpenAI, renowned for its groundbreaking work in artificial intelligence, is set to transform the technology landscape once again. The company has announced a landmark $6.5 billion acquisition of io, the hardware startup founded by legendary Apple designer Jony Ive. This move marks OpenAI’s most significant foray into the physical device market and signals a strategic shift from software dominance to pioneering the next generation of AI-powered hardware.
The Vision: Redefining Human-AI Interaction
The collaboration between OpenAI CEO Sam Altman and Jony Ive is rooted in a shared ambition: to reimagine how people interact with technology in the age of artificial intelligence. Altman has openly criticized the limitations of current devices—laptops, smartphones, and tablets—arguing that they are relics of a pre-AI era and ill-suited for the seamless integration of generative AI into daily life.
“I think we have the opportunity here to completely reimagine what it means to use a computer,” Altman stated in a recent announcement, underscoring the need for a new class of device that is intuitive, portable, and deeply aware of its user’s environment.
Inside the Deal: io’s Role and the Path Forward
Founded in early 2024, io brings together a formidable team of former Apple designers, including Scott Cannon, Evans Hankey, and Tang Tan, under Jony Ive’s leadership. The startup’s mission aligns perfectly with OpenAI’s vision: to develop a family of AI devices tailored for the artificial general intelligence (AGI) era. With this acquisition, io will become OpenAI’s dedicated devices division, led by Peter Welinder, while Ive’s design firm LoveFrom will steer creative direction as an independent partner.
The design philosophy behind the new AI device is radical. Early reports suggest a departure from conventional screens and keyboards, favoring a compact, screenless form factor that can be worn or discreetly placed in everyday settings. The device is expected to leverage environmental awareness and advanced AI to provide a more natural, contextual interface—one that could ultimately replace the smartphone as the primary gateway to digital experiences.
Aiming for Mass Adoption: 100 Million Units and Beyond
Sam Altman has set an ambitious target: to sell 100 million units of the new AI companion device, potentially faster than any tech product in history. The goal is to make AI an unobtrusive yet integral part of daily life, with devices that sit in your pocket, on your desk, or by your bedside—constantly aware and ready to assist without the friction of traditional interfaces.
The product is slated for a public reveal by the end of 2026, with supply chain preparations already underway to meet the aggressive sales target. Altman has described the project as OpenAI’s “most significant product,” comparing its potential impact to that of the iPhone or MacBook Pro.
Market Context: Competition and Challenges
OpenAI’s hardware ambitions come at a time of intensifying competition. Tech giants like Apple and Google are racing to embed generative AI into their ecosystems, while previous attempts at AI-first devices—such as Humane’s AI Pin and Rabbit’s R1—have struggled to gain traction. Jony Ive has openly dismissed these earlier efforts as “terrible,” emphasizing the need for a more thoughtful, user-centric approach.
Financially, this bold move is also a strategic pivot. OpenAI faces mounting operational losses, projected to reach $44 billion between 2023 and 2028, and aims to achieve profitability by 2029. Hardware, Altman believes, is the key to unlocking new revenue streams and establishing OpenAI as a dominant force in both software and devices.
Industry Impact: The Future of AI-Driven Devices
The implications of this partnership extend far beyond a single product launch. By uniting OpenAI’s leadership in generative AI with Jony Ive’s design mastery, the company aims to set new standards for human-computer interaction. The device’s screenless, context-aware design could usher in an era of “physical AI,” where artificial intelligence is embedded seamlessly into the fabric of everyday life.
Analysts and industry insiders are watching closely. Some speculate the device could resemble a next-generation wearable or a minimalistic, voice-activated assistant—compact, portable, and always listening. Others see it as the first step toward a future where smartphones themselves become obsolete, replaced by AI companions that anticipate and respond to users’ needs in real time.
Conclusion
OpenAI’s acquisition of io and partnership with Jony Ive represents a pivotal moment in the evolution of technology. With a vision to sell 100 million units and redefine the interface between humans and machines, OpenAI is poised to challenge the dominance of Apple and Google and shape the future of AI-powered devices. As the world awaits the unveiling of this mysterious new product in 2026, one thing is clear: the next era of computing may be closer than we think.
