OpenAI acquires a startup with an iPhone design team. It will create AI gadgets
OpenAI has announced the acquisition of io, a startup founded by Jony Ive, the designer of the first iPhone. The deal is valued at $6.5 billion and envisages the creation of a separate unit for the development of devices with built-in generative AI, says in the ChatGPT developer blog.
After the deal is finalized, Ive will become the creative head of the division. His company LoveFrom has been working with OpenAI on the concept of AI devices for more than two years. Together with OpenAI CEO Sam Altman, they presented the first prototype, but without details. According to Ive, it is "the most amazing piece of technology the world has ever seen.".
As part of the acquisition, OpenAI will acquire a team of more than 50 engineers, developers, and production specialists who have worked on the iPhone, iPad, and other Apple products.
Ive created the startup io about a year ago, and OpenAI already owned 23% of its shares.
The deal is expected to be finalized by summer, after regulatory approval.
It's the first major merger in OpenAI's history, and a signal that the company wants to move beyond software and create its own devices. Their goal is to combine the design that has made Apple products iconic with ChatGPT technology.
Earlier, some startups, such as Humane AI and Rabbit, have already tried to create personal gadgets with artificial intelligence. However, their products received mixed reviews due to limited functionality and technical problems.
For Ive, it's a return to the big tech game. He worked with Apple for over 20 years, designing the iPhone, iPad, MacBook, and Apple Watch. He left the company in 2019 to found LoveFrom.
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