OpenAI didn’t just buy a startup—it bought a design legacy. On May 21, 2025, the AI giant announced its $6.5 billion all-stock acquisition of io Products, Inc., the secretive hardware venture co-founded by Sir Jonathan Ive, the former Apple design chief whose fingerprints are on the iPhone, iPad, and MacBook. The deal, finalized on July 9, 2025, after regulatory approval, brings 55 top-tier engineers and designers into OpenAI’s fold, including veterans from Apple’s most iconic product teams. This isn’t just a hiring spree. It’s a declaration: OpenAI is building physical objects that think—and they want them to feel human.
The Design Revolution That Started in Secret
Two years before the public announcement, Sir Jonathan Ive and his design collective LoveFrom quietly began working with Sam Altman and OpenAI’s core team. What started as casual brainstorming over coffee evolved into a shared mission: to build technology that doesn’t demand attention, but quietly enhances it. "When I said we have an uncomfortable relationship with our technology," Ive told attendees at OpenAI’s DevDay in San Francisco, "I mean that’s the most obscene understatement." His disillusionment with smartphones—how they fracture focus, fuel anxiety, and turn users into passive consumers—became the driving force behind io’s creation.The acquisition wasn’t a surprise to insiders. OpenAI already held a 23% stake in io, making the $6.5 billion buyout the logical next step. With the deal closed, io Products, Inc. officially merged into OpenAI, and Tang Tan, Ive’s longtime production lead from Apple, was named OpenAI’s Chief Hardware Officer. Meanwhile, LoveFrom remains independent but now holds deep creative control over all of OpenAI’s hardware and software interfaces—a rare structure that preserves design autonomy while integrating it into AI’s core.
Apple’s Best and Brightest, Now at OpenAI
Since early 2025, OpenAI has quietly recruited over two dozen former Apple employees. Among them: Cyrus Daniel Irani, who spent 15 years on Apple’s hardware engineering team; Matt Theobald, a 17-year veteran of the iPhone’s industrial design group; and Erik de Jong, who helped develop the Apple Watch’s sensor architecture. Their departure didn’t go unnoticed. Apple canceled its annual China offsite in August 2025, reportedly because executives feared losing more talent while away.Manufacturing is already in motion. Luxshare, Apple’s primary iPhone assembler in China, has signed contracts to build OpenAI’s first devices. Goertek, another Apple supplier known for audio components, is handling microphones and sensors. The supply chain isn’t just familiar—it’s a direct pipeline from Apple’s most successful products into OpenAI’s next chapter.
What Are They Building? No Screens. No Buttons. Just Intelligence
The product list reads like science fiction made practical: a palm-sized, screenless smart speaker that responds to voice, gesture, and ambient sound; smart glasses that overlay contextual AI insights without cluttering your vision; a wearable pin that vibrates gently to signal notifications or emotional cues; and a digital voice recorder that doesn’t just transcribe—but understands intent. "We’ve created 15 to 20 really compelling product ideas," Ive said. "The challenge is to focus. It would be easy if you knew there are three good ones. It’s just not like that."OpenAI’s VP of Product, Peter Welinder, is overseeing the development, but the soul of these products comes from Ive’s philosophy: minimalism, tactile feedback, and emotional resonance. "Great tools require work at the intersection of technology, design, and understanding people," Altman said. "No one can do this like Jony and his team."
The first device is expected in late 2026 or early 2027. Not a gadget. Not a phone. A companion.
Why This Changes Everything
OpenAI has spent years refining its AI models. Now, it’s building the hands they’ll touch. For years, AI lived in apps, browsers, and cloud APIs. But OpenAI is moving beyond the screen. This isn’t about competing with Apple’s Siri or Amazon’s Alexa. It’s about redefining what interaction with AI feels like. If Ive’s previous work made technology beautiful, this could make it humane.The stakes are enormous. Apple’s $300 billion valuation is built on hardware. OpenAI, now valued at $300 billion itself, is betting that the next era of AI won’t be driven by search bars or chat windows—but by objects that anticipate needs before they’re spoken. And if they succeed, the entire consumer electronics landscape could shift in less than two years.
What’s Next? The Quiet War for the Future of Tech
OpenAI’s acquisition of io Products, Inc. is more than a corporate merger. It’s a cultural realignment. Apple, once the undisputed king of design-led innovation, now finds itself defending its crown. Meanwhile, OpenAI—once just a research lab—is becoming a product powerhouse with the pedigree to rival any tech giant.Next up? Regulatory scrutiny over talent poaching. Possible antitrust questions around OpenAI’s growing control over both AI models and hardware ecosystems. And of course, the first product launch—when the world finally sees what Ive and Altman have been hiding.
Frequently Asked Questions
How does this affect Apple’s future product development?
Apple has lost key design and engineering talent to OpenAI, including veterans from the iPhone and Apple Watch teams. The cancellation of its 2025 China offsite suggests internal panic over further defections. While Apple still controls its ecosystem, its ability to innovate at the same pace may be hindered without Ive’s design philosophy and the engineers who executed it.
What makes OpenAI’s new devices different from smart speakers like Alexa?
Unlike Alexa or Google Home, which rely on voice commands and screens, OpenAI’s devices—designed by Ive’s team—will likely be screenless, gesture-responsive, and emotionally attuned. They aim to reduce digital anxiety by blending into environments, not demanding attention. Think subtle vibrations or ambient light cues instead of loud alerts.
Why did Jony Ive leave Apple to join OpenAI?
Ive became disillusioned with how smartphones fragment attention and increase user anxiety. He believed AI could be used to create technology that supports, rather than exploits, human behavior. His collaboration with Altman offered a chance to build devices that prioritize calm, presence, and intentionality—values he felt were fading at Apple.
Will these devices work with existing AI tools like ChatGPT?
Yes. OpenAI has confirmed these devices will be deeply integrated with its AI models, including ChatGPT and GPT-5. They’re not standalone gadgets—they’re physical interfaces to the same intelligence powering the app. But unlike typing into a chat box, you’ll interact through voice, touch, and even environmental awareness.
Is this acquisition legally secure?
Regulatory approval was confirmed on July 9, 2025, clearing the merger in the U.S. and major international markets. However, antitrust watchdogs in the EU and UK are monitoring whether OpenAI’s control over both AI models and hardware could create an unfair advantage. No formal challenges have been filed yet.
What’s the timeline for product releases?
Development is underway, with prototypes already tested internally. The first product is expected in late 2026, with a broader family of devices rolling out through 2027. OpenAI has hinted at a "quiet launch"—no keynote, no splashy ads—just a simple release aimed at early adopters who value design and discretion.
