OpenAI Buys iPhone Designer Jony Ive’s AI Device Startup for $6.5 Billion-OxBig News Network

OpenAI is shopping for Jony Ive’s startup io Products in a $6.5 billion (roughly Rs. 55,850 crore) deal and can carry the chief designer of early iPhones on board as inventive head to develop units tailor-made for the generative synthetic intelligence period.

LoveFrom, the design agency based by Ive after leaving Apple, has been working with OpenAI for 2 years on generative AI units – an space the place startups have stumbled because of excessive computing calls for, together with flops comparable to Humane’s AI Pin.

With Ive main design, OpenAI goals to pair the know-how behind its standard ChatGPT chatbot with the product design experience that made units such because the iPhone bestsellers.

The firms didn’t disclose the monetary particulars of the deal for io, which Ive co-founded a yr in the past. The all-stock deal was valued at $6.5 billion (roughly Rs. 55,850 crore) based mostly on OpenAI’s $300 billion (roughly Rs. 25,77,871 crore) valuation, in response to a supply acquainted with the matter.

OpenAI had beforehand owned a 23 % stake within the firm, in response to the supply who requested anonymity to debate personal issues.

“The merchandise that we’re utilizing to ship and join us to unimaginable know-how. They’re a long time outdated, yeah, and so it is simply widespread sense to no less than suppose certainly there’s one thing past these legacy merchandise now we have,” OpenAI CEO Sam Altman and Ive stated in a video posted on OpenAI’s weblog.

Altman stated that they had a prototype of a tool with out giving additional particulars, however referred to as it “the good piece of know-how the world could have ever seen”.

Apple didn’t instantly reply to a request for remark. Its shares fell greater than two % on the information.

The iPhone maker has been sluggish to roll out Apple Intelligence, a set of options with entry to ChatGPT, with a number of superior AI instruments accessible on competing Android smartphones.

“OpenAI is concerned about proudly owning the subsequent {hardware} platform so they do not need to promote their merchandise by Apple iOS or Google’s Android,” D.A. Davidson analyst Gil Luria stated.

“This is similar ambition Meta has with the Quest goggles and Meta Ray Bans.”

A couple of firms comparable to Humane AI and Rabbit have tried to construct bespoke units for the AI period.

However, Humane AI, based by former Apple executives, struggled with its AI Pin machine, which confronted criticism for battery life, warmth points, restricted performance and excessive prices.

HP acquired Humane AI’s property, together with its AI platform Cosmos, mental property and technical expertise for $116 million (roughly Rs. 996 crore), successfully discontinuing the AI Pin product.

Rabbit, however, has bought greater than 100,000 of r1 units, however reviewers have stated performance stays restricted when put next with smartphones.

© Thomson Reuters 2025

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