In a move that has sent ripples through the tech world, OpenAI, the creator of ChatGPT, has partnered with legendary designer Jony Ive, the mastermind behind Apple’s iconic iPhone, iPod, iPad, and other groundbreaking products. Announced on May 21, 2025, this $6.5 billion deal involves OpenAI acquiring Ive’s AI hardware startup, io, in an all-stock transaction, marking the company’s largest acquisition. This partnership aims to blend OpenAI’s cutting-edge AI capabilities with Ive’s unparalleled design expertise to create a new generation of AI-powered devices. Here’s a detailed look at this collaboration, its objectives, and what it means for the future of technology.
The Genesis of the Partnership
The collaboration between OpenAI and Jony Ive began two years ago, rooted in a shared vision to reimagine how people interact with technology. According to a joint statement by OpenAI CEO Sam Altman and Ive, their partnership evolved from “friendship, curiosity, and shared values” into a bold ambition to create a new family of AI-driven products. The idea for io, founded by Ive and other Apple alumni in 2024, emerged from this collaboration to develop hardware that seamlessly integrates with OpenAI’s generative AI technologies.
Ive, who spent 27 years at Apple shaping its design philosophy, left in 2019 to found LoveFrom, a creative collective working with brands like Airbnb and Ferrari. Through LoveFrom, Ive quietly collaborated with OpenAI, laying the groundwork for io, a startup focused on engineering and manufacturing AI-powered devices. The acquisition of io brings Ive’s team of approximately 55 engineers and researchers, including former Apple design leaders like Scott Cannon, Tang Tan, and Evans Hankey, into OpenAI’s fold, with Ive and LoveFrom assuming creative and design oversight across OpenAI’s products, including software and hardware.
The Objective: A New Era of AI Hardware
The primary objective of this partnership is to create a “new family of products” that redefines how users engage with AI. In a promotional video, Ive and Altman emphasized that existing devices like smartphones and laptops are “decades old” and not optimized for AI’s capabilities. They aim to develop devices that make AI interactions more intuitive, less socially disruptive, and deeply integrated into daily life. While specifics about the devices remain concealed, Altman has hinted at a “crazy, ambitious thing” that could be “the coolest piece of technology the world will have ever seen.”
Speculation suggests the first product may be a screenless, phone-like device with advanced AI capabilities, distinct from traditional smartphones or smart glasses. This aligns with Ive’s skepticism about wearable devices and a focus on unobtrusive hardware that prioritizes user experience. The Wall Street Journal reported that OpenAI plans to produce 100 million AI “companions” designed to be aware of users’ surroundings and seamlessly integrate into their lives, potentially becoming a third core device alongside laptops and phones.
Why Jony Ive?
Jony Ive’s involvement brings unparalleled design credibility to OpenAI’s hardware ambitions. Known for his minimalist aesthetic and diligence, Ive transformed Apple with products like the iMac (1998), iPod (2001), iPhone (2007), and Apple Watch (2014). His ability to blend form, function, and user experience made Apple a global leader, and his track record lends weight to OpenAI’s goal of creating AI hardware that resonates with consumers. As Justin McGuirk from the UK’s Design Museum noted, “If OpenAI wants to take AI-based hardware to market, especially when many are skeptical about the need for such things, it has to be incredibly good. Ive’s name will boost confidence.”
Ive’s team also includes Apple veterans who contributed to iconic products, ensuring a deep well of expertise. OpenAI’s acquisition of io secures this talent, positioning the company to overcome challenges faced by other AI hardware ventures, such as Humane AI’s criticized AI Pin, which struggled with battery life and functionality. Ive dismissed such products as “bad,” signaling a commitment to setting a higher standard.
The Broader Context: OpenAI’s Hardware Push
OpenAI’s partnership with Ive is part of a broader strategy to become a major consumer brand, not just a provider of backend AI technology. The company, valued at $300 billion after a 2025 funding round led by SoftBank, faces intense competition from Google, Microsoft, Meta, and xAI in the generative AI race. To differentiate itself, OpenAI is investing in hardware, hiring experts like Caitlin “CK” Kalinowski, former head of Meta’s augmented reality glasses initiative, to lead robotics and consumer hardware efforts. The acquisition of io and collaboration with Ive signal a bold move to combine AI software with innovative hardware, potentially challenging established players like Apple.
This move also reflects the industry’s recognition that AI’s potential extends beyond software. While ChatGPT revolutionized AI accessibility, hardware tailored to AI could simplify user interactions and create new use cases. As tech analyst Benedict Evans noted, OpenAI is attempting to “bootstrap itself into becoming a major platform company,” with Ive’s design expertise helping to differentiate its offerings in a commoditizing AI market.
Implications for Apple and the Tech Industry
The partnership has sparked debate about its implications for Apple, where Ive played a pivotal role in its revival. Some analysts view it as a “wake-up call” for Apple, suggesting that OpenAI’s AI hardware could threaten the iPhone’s dominance. Apple’s AI efforts, including its Apple Intelligence platform and ChatGPT integration into iOS 18, have been seen as lagging behind competitors. However, others argue that Apple remains well-positioned, as users can access advanced AI through iPhones, and the company is exploring partnerships with other AI providers like Google’s Gemini. Apple’s stock fell over 2% following the announcement, reflecting investor concerns, but the long-term impact remains uncertain.
For the broader tech industry, this partnership intensifies the race to define the next generation of computing. Google’s AI-powered smart glasses and Meta’s AI tools highlight the competitive landscape, where hardware innovation is critical to capturing consumer interest. OpenAI’s move could pressure rivals to accelerate their own AI hardware development, potentially reshaping how we interact with technology.
Looking Ahead
OpenAI and Ive plan to unveil their first product in 2026, with details still closely guarded. The partnership’s success will hinge on its ability to deliver functional and desirable devices, avoiding the pitfalls of previous AI hardware attempts. With Ive’s design prowess and OpenAI’s AI expertise, the collaboration has the potential to create what Altman calls “a new generation of AI-powered computers” that “elevate humanity.”
We’re excited to watch this partnership unfold and explore how AI-driven hardware can transform industries. As we continue SMD Network’s innovation mission of developing innovative AI solutions and empowering businesses with cutting-edge technology, we see this collaboration as a testament to the power of combining visionary design with advanced AI. Stay tuned for more insights on how AI is shaping the future of technology.
