OpenAI has made a strategic move by acquiring AI device company io in an all-equity deal valued at approximately US$6.4-billion, and by recruiting design legend Jony Ive, co-founder of io and former Apple design genius. This acquisition aims to position OpenAI ahead in the AI device development race, drawing parallels to Apple's past market dominance. The move is seen as crucial for competing with deep-pocketed rivals like Google, Anthropic, and xAI, despite OpenAI's recent stumbles including disruptive outages, glitches, and the temporary ousting of CEO Sam Altman.
Opinion: Can OpenAI really go the way of Apple and capture lightning in a bottle?
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TL;DR: Key points with love ❤️OpenAI has made a strategic move by acquiring AI device company io in an all-equity deal valued at approximately US$6.4-billion, and by recruiting design legend Jony Ive, co-founder of io and former Apple design genius. This acquisition aims to position OpenAI ahead in the AI device development race, drawing parallels to Apple's past market dominance. The move is seen as crucial for competing with deep-pocketed rivals like Google, Anthropic, and xAI, despite OpenAI's recent stumbles including disruptive outages, glitches, and the temporary ousting of CEO Sam Altman.
Trending- 1 1997: Steve Jobs returned to Apple and hired Jony Ive.
- 2 November 2023: OpenAI board ousted and then reinstated Sam Altman as CEO.
- 3 Last year (2024): OpenAI acquired analytics database company Rockset.
- 4 A few weeks ago (early June 2025): OpenAI agreed to buy AI-assisted coding tool Windsurf for US$3-billion.
- 5 Late last month (late May 2025): OpenAI announced plans to acquire io for US$6.4-billion, including Jony Ive.
- OpenAI aims to establish a significant lead over rivals in AI device development
- Potential for consolidation and 'flame-outs' within the AI sector
- OpenAI's reputation was previously damaged by governance issues
- Potential for OpenAI to capture market leadership in AI devices if Jony Ive is given creative freedom
What: OpenAI's acquisition of AI device company io and the recruitment of Jony Ive.
When: Late last month (referring to the acquisition announcement), November 2023 (Altman's ousting), last year (Rockset acquisition), a few weeks ago (Windsurf acquisition).
Where: The context is the global tech industry, with Apple's California headquarters mentioned as a design reference.
Why: To gain a strategic advantage in the generative AI device market, leverage Jony Ive's renowned design expertise, and enhance competitiveness against rivals like Google, Anthropic, and xAI, while also addressing past reputational issues.
How: Through an all-equity deal valued at about US$6.4-billion for io, which includes Jony Ive, and by previously acquiring other hardware assets like Windsurf and Rockset, and hiring key personnel.