Acquisition marks bold hardware push as ChatGPT maker expands beyond software
OpenAI is set to acquire a hardware startup led by former Apple design chief Sir Jony Ive in a deal valued at around USD 6.5 billion, as the artificial intelligence firm makes a significant push into consumer devices.
The startup, reportedly backed by Japanese tech investor SoftBank, has been working in stealth mode under Ive’s leadership. The acquisition signals OpenAI’s growing ambition to develop AI-native hardware that could reimagine how users interact with its popular chatbot, ChatGPT, and other generative AI tools.
The deal brings together some of the biggest names in design and technology. Ive, best known for leading the design of Apple’s iconic products including the iPhone and MacBook, left Apple in 2019 after nearly three decades. He has since been running LoveFrom, a creative collective with a focus on product design and innovation.
OpenAI’s chief executive, Sam Altman, has previously expressed interest in building hardware products, particularly those that offer more seamless and natural integration with AI systems. The partnership with Ive – whose minimalist design ethos helped shape the modern smartphone era – is expected to accelerate these efforts.
While specific product plans have not been disclosed, sources close to the matter suggest the device could combine conversational AI with elegant, user-centric design, potentially paving the way for a new category of smart hardware.
The acquisition, one of the largest in the emerging AI hardware space, comes amid intensifying competition among tech giants to dominate the interface between humans and artificial intelligence. Rivals including Apple, Google and Meta are also exploring AI-powered wearables and devices that go beyond the smartphone.
OpenAI’s foray into hardware follows the rapid rise of ChatGPT, which became one of the fastest-growing consumer applications in history after its launch in 2022. The company has since diversified its offerings, launching tools for image generation, voice interaction and enterprise applications.
The acquisition is expected to close later this year, subject to regulatory approval. Neither OpenAI nor representatives for Jony Ive have publicly commented on the transaction.