OpenAI has enlisted the expertise of Jony Ive, the iconic designer formerly with Apple, to spearhead a novel hardware endeavor for the company known for creating ChatGPT. In a substantial move, OpenAI is in the process of acquiring io Products, a firm co-founded by Ive, significantly valued at roughly $6.5 billion.
Ive, celebrated for his keen eye for design, played a pivotal role during his 27 years at Apple, leaving a lasting cultural impact after departing in 2019. His most renowned work emerged following the 1997 return of Apple’s co-founder Steve Jobs to the helm of the company, leading to revolutionary products including the iPhone. This new chapter with OpenAI positions Ive at the forefront of artificial intelligence, an industry shift of magnitude on par with the iPhone’s introduction.
While OpenAI has not divulged specifics on the product, there are indications it could involve “physical AI embodiments.” These could range from integrating AI technology into cars, humanoid robots, or AI-powered devices similar to those in development by competitors Google and Meta, speculates Gartner analyst Chirag Dekate. However, the exact nature of these new products remains to be seen. OpenAI revealed that its CEO, Sam Altman, has been covertly collaborating with Ive and his design firm, LoveFrom, since 2023.
In a joint statement on OpenAI’s website, Ive and Altman expressed a shared vision: the ambition to innovate and manufacture a groundbreaking product line warranted the creation of an entirely new company. Thus, Ive co-founded io, formalized in Delaware in September 2023 and subsequently registered in California by April 2024, according to official state records. OpenAI had already acquired a 23% interest in io from an earlier collaborative contract finalized last year, and is proceeding to invest $5 billion in equity as part of the acquisition.
Despite these developments, Ive will not join OpenAI as an employee. Instead, LoveFrom will continue to function independently while taking on significant creative and design responsibilities across both OpenAI and io. Both establishments reside in San Francisco, with LoveFrom setting up its headquarters in a historically rich area once popular with influential literary figures such as Jack Kerouac and Allen Ginsberg.
Leading the new io division at OpenAI is Peter Welinder, a longtime executive instrumental in the startup’s early focus on robotics and now vice president of its innovative “new product explorations” team that engages in hardware and robotics research. Altman, age 40, aspires for a successful collaboration with the 58-year-old Ive, akin to the productive partnership seen between Ive and Jobs.
As OpenAI proceeds with its mission of safely advancing AI representations exceeding human intelligence, it remains under the purview of a nonprofit board. Founded nearly a decade ago, the organization has increasingly shifted toward commercial endeavors with ChatGPT and other pioneering inventions. Despite Altman’s brief departure in November 2023 and subsequent return, the company’s strategic direction continues to evolve. OpenAI’s governance structure, while not adopting a nonprofit model, is exploring pathways to better facilitate capital access and foster mergers and acquisitions, aligning with conventional corporate objectives.