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Dec. 29, 2025, 5:24 a.m.
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OpenAI Acquires AI Hardware Startup io for $6.5 Billion to Revolutionize AI Devices

Brief news summary

OpenAI is acquiring AI hardware startup io, founded by former Apple Chief Design Officer Jony Ive, for $6.5 billion, marking a significant expansion into hardware development. io is known for its innovative, user-friendly designs emphasizing simplicity and seamless experiences. This acquisition aims to combine OpenAI’s advanced AI software with io’s sleek hardware to develop AI-powered devices for sectors such as personal assistants, smart homes, robotics, and healthcare. By integrating AI research with cutting-edge design, OpenAI plans to speed up product development, improve accessibility, and meet rising demand for specialized AI hardware that delivers enhanced computation, energy efficiency, and integration. This vertical integration of hardware and software will enable optimized AI performance while maintaining ethical standards, security, and privacy. Expected to finalize soon, the deal positions OpenAI to lead AI innovation and advance human-machine interaction through next-generation devices.

OpenAI, a leading AI research organization, has announced the acquisition of AI hardware startup io for $6. 5 billion. This major move underscores OpenAI's commitment to expanding beyond software into AI hardware development. Founded with the mission to advance artificial intelligence for humanity’s benefit, OpenAI aims to leverage hardware innovation alongside its pioneering AI research. The startup io, known for its strong reputation in hardware design, was founded by Jony Ive, former Chief Design Officer at Apple. Ive is famed for designing iconic products like the iPhone, iPad, and MacBook, emphasizing simplicity, user experience, and aesthetic appeal—qualities that have reshaped technology standards worldwide. His expertise is expected to substantially enhance OpenAI’s capability to create advanced AI-driven devices. This acquisition clearly signals OpenAI’s ambition to develop innovative AI-powered hardware that enhances user experiences across platforms. Integrating hardware with OpenAI’s sophisticated AI software marks a natural evolution in AI technology, enabling better performance, efficiency, and new functionalities unattainable by software alone. The collaboration between OpenAI’s researchers and io’s hardware design team is set to accelerate new AI product development, producing systems that are more powerful, accessible, and engaging across various applications such as personal assistants, smart home devices, robotics, and healthcare tools. This fusion of advanced AI and sleek hardware promises new frontiers in technology use. The deal is expected to finalize in coming months after regulatory approvals, with io’s team joining OpenAI to push AI hardware boundaries.

The acquisition also provides io with greater resources to scale innovation and manufacturing rapidly. This move aligns with a broader industry trend where AI developers invest in custom hardware tailored for AI workloads, surpassing limitations of general-purpose hardware by optimizing speed, energy use, and software integration. OpenAI’s acquisition of a company with strong design and engineering capabilities showcases a forward-looking strategy, recognizing that the future of AI depends on both software advances and the devices that deliver AI to daily life, unlocking novel experiences previously unattainable. Furthermore, this acquisition fits OpenAI’s mission to ensure artificial general intelligence benefits all humanity. Controlling both hardware and software enables greater oversight of AI technology distribution and ethical integration, allowing higher standards for security, privacy, and user control in AI devices. Industry analysts note the $6. 5 billion price reflects the value of combining deep design expertise with AI hardware innovation. Jony Ive’s involvement adds significant credibility, with his user-centric vision expected to heavily influence OpenAI’s upcoming AI hardware products. Looking ahead, the AI and tech communities eagerly anticipate how this acquisition will shape AI-powered devices. As OpenAI integrates io’s technologies and talent, it is poised to deliver products that seamlessly blend AI with everyday activities, fostering smarter, more intuitive human-machine interactions. In summary, OpenAI’s acquisition of io marks a milestone at the crossroads of AI research and hardware innovation. Together, they stand to lead the next generation of AI devices, offering enhanced performance, improved user experience, and wider accessibility. This strategic expansion solidifies OpenAI’s leadership in advancing technology for the global good.


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