Jony Ive to lead OpenAI’s design work following $6.5B acquisition of his company

Famed Apple product designer Jony Ive will now lead creative and design work at OpenAI, the result on an unusual deal announced on Wednesday. OpenAI is acquiring io, the device startup that CEO Sam Altman and Ive have quietly been working on for two years, in a deal that values that startup at $6.5 billion, according to The Wall Street Journal.

“Thrilled to be partnering with Jony, [in my opinion] the greatest designer in the world,” said Altman in a post on X Wednesday. “Excited to try to create a new generation of AI-powered computers.”

OpenAI and Ive’s collaboration puts one of Apple’s lead designers — famous for crafting the iPhone, iPod, iPad, and Apple Watch — at the forefront of the newest technology wave, generative AI. Since the launch of ChatGPT in 2022, OpenAI has amped up its consumer business significantly. Earlier this month, the company appointed former Meta executive and Instacart CEO Fidji Simo to lead its consumer applications.

Ive could help OpenAI directly compete with Apple in the consumer hardware space, putting even more pressure on the iPhone-maker. In recent years, Apple has struggled to develop AI features that keep up with the latest technology from OpenAI and Google. Apple’s stock fell 2% on Wednesday after the OpenAI and Ive collaboration was announced.

Io has a staff of around 55 engineers, scientists, researchers, physicists, and product development specialists, per The Wall Street Journal, all of which will join OpenAI. Many of io’s employee are former Apple designers — including Scott Cannon, Evans Hankey and Tang Tan — who helped build the firm’s most iconic products. Meanwhile, Ive will retain control of his design firm, LoveFrom, which will continue to operate independently.

Io, under OpenAI, will develop AI-powered consumer devices and other projects. Altman and Ive have reportedly been working on a device that moves consumers “beyond screens.” Bloomberg reports that Ive and Altman’s first devices are slated to debut in 2026. The Wall Street Journal reports that Ive will have an expansive role, giving input into future versions of ChatGPT and more.

OpenAI already owned a 23% stake in io as part of an agreement between the companies last year, according to The New York Times. That means OpenAI will pay $5 billion to fully acquire io, marking the ChatGPT-maker’s largest acquisition ever. Separately, OpenAI’s Start-Up Fund reportedly invested in io last year.

In a video posted by OpenAI, Ive said he’s convinced that everything he’s learned “over the last 30 years has led me to this place and this moment.”

The Information first reported on OpenAI’s discussions to acquire io in March. At the time, the two companies had discussed building a device that would bring a version of the technology from the movie “Her” to life.