OpenAI, the creator of the leading artificial intelligence chatbot ChatGPT, is preparing to enter the physical hardware space. The company revealed that it is acquiring a device startup named io, founded by former Apple designer Jony Ive, in a deal valued at just under $6. 5 billion. This marks OpenAI’s largest acquisition so far. This partnership unites two prominent figures in technology: Jony Ive, renowned for designing the iPhone and other iconic Apple products, and OpenAI CEO Sam Altman, a key leader in AI innovation. The announcement was made via a video on Wednesday. Altman stated their goal is "figuring out how to create a family of devices that would let people use AI to create all sorts of wonderful things. " He explained the concept that current devices—like phones and laptops—are outdated and not designed to fully harness AI capabilities. “AI is an incredible technology, but great tools require work at the intersection of technology, design, and understanding people and the world, ” Altman said, without sharing additional specifics. Several other companies are also competing to gain ground in the field of AI-powered devices.

These devices can perceive the physical world and analyze data in real time using artificial intelligence, potentially including robots, autonomous vehicles, smart glasses, or other wearable tech. This emerging category is often termed “physical AI” because it brings AI from purely software-based applications into tangible products. Jony Ive and his design firm LoveFrom, which he established after leaving Apple in 2019, will take on design and creative roles across both OpenAI and io, according to the announcement. Altman and Ive indicated they plan to publicly reveal their work next year, though they did not offer further details. Chirag Dekate, an analyst at the technology consultancy Gartner, described the collaboration as a “decisive step to shape the user experience end-to-end. ” “This move secures world-class design expertise and product engineering talent, essential for translating powerful AI models that OpenAI is known for, into tangible, intuitive platform-powered experiences, ” he wrote in an email to NPR. “The race for dominating and shaping Physical AI will accelerate because of OpenAI's strategic moves. ” What exactly Altman and Ive envision remains unclear, and an OpenAI spokesperson declined to comment further. Altman has previously invested in Humane, a company that developed an AI-enabled lapel pin.