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OpenAI Acquires Jony Ive’s Startup for $6.5 Billion, Taps iPhone Designer as Creative Head for AI Devices

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OpenAI has acquired io Products, the hardware startup co-founded by legendary Apple designer Jony Ive, in a $6.5 billion all-stock deal, and named him creative head of the company as it seeks to build breakthrough devices for the generative AI era.

The move marks OpenAI’s most ambitious hardware play yet, combining Ive’s iconic product design legacy with the company’s fast-evolving AI capabilities. Ive’s design firm LoveFrom has been collaborating with OpenAI for the past two years, exploring new device concepts designed to move beyond the traditional smartphone and laptop interfaces.

“The products that we’re using to deliver and connect us to unimaginable technology — they’re decades old,” said Sam Altman and Jony Ive in a video posted to OpenAI’s blog.
“Surely there’s something beyond these legacy products we have.”

Altman teased a working prototype — calling it “the coolest piece of technology the world will have ever seen” — though no product details were shared.

Strategic Implications

OpenAI previously held a 23% stake in io Products, according to a source familiar with the matter. The $6.5 billion valuation is based on OpenAI’s estimated market value of $300 billion.

This acquisition underscores OpenAI’s desire to control its own hardware platform, breaking away from reliance on Apple’s iOS or Google’s Android to distribute its AI services, such as ChatGPT and other generative tools.

“OpenAI is interested in owning the next hardware platform so they don’t have to sell their products through Apple or Google,” said Gil Luria, analyst at D.A. Davidson.

Competitive Landscape

The AI hardware category is heating up, with recent attempts including:

  • Humane’s AI Pin, developed by ex-Apple executives, which was recently shut down and acquired by HP after poor reception due to limited battery life and high cost.

  • Rabbit’s r1 device, which sold over 100,000 units but has drawn criticism for limited functionality compared to smartphones.

  • Meta’s Quest and Ray-Ban smart glasses, part of the company’s long-term push into AI-powered wearables.

Apple, meanwhile, has been slow to integrate generative AI tools, with its Apple Intelligence features lagging behind offerings on Android. The news of Ive’s alignment with OpenAI sparked a more than 2% drop in Apple shares.

What’s Next?

OpenAI now positions itself not just as a software leader in AI, but as a potential hardware disruptor, aiming to redefine how users physically interact with intelligent systems. With Jony Ive on board and a prototype already in development, the tech world is watching closely to see if OpenAI can succeed where others have faltered.

Apple Developing Custom Chips for Smart Glasses, AI Servers, and Next-Gen Macs

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Apple is advancing its hardware ambitions with the development of specialized chips designed to power future products, including its first smart glasses, AI servers, and next-generation MacBooks, Bloomberg News reported on Thursday, citing sources familiar with the matter.

The tech giant’s reported progress on a low-power chip for smart glasses signals its intent to directly compete with Meta’s popular Ray-Ban smart glasses, a category that’s becoming increasingly central in the race toward consumer wearables integrated with AI.

The glasses-specific chip is said to be based on Apple Watch silicon, emphasizing power efficiency and compact form factors. It has been tailored to support multiple cameras — a key feature for augmented reality (AR) and immersive use cases — and could enter mass production as early as late 2026 or 2027, with TSMC (Taiwan Semiconductor Manufacturing Company) slated as the manufacturing partner.

Beyond Smart Glasses:
Apple is also reportedly working on AI-optimized server chips to support the Apple Intelligence platform — the company’s suite of on-device AI features introduced for iPhones. These capabilities include notification summaries, email rewriting, and integration with OpenAI’s ChatGPT.

The server chips would provide the infrastructure needed to process more complex AI workloads, marking a notable shift for Apple as it begins to build its own AI compute backbone, rather than relying entirely on third-party providers.

MacBook Chip Roadmap Expands:
In addition, Apple is said to be developing new Mac chips, expected to be named the M6 and M7, extending its in-house silicon strategy. Apple’s custom chips have already proven transformative in differentiating its Mac lineup, offering significant performance gains over Intel-based predecessors.

Earlier this year, Apple also unveiled its first custom modem chip for iPhones, reinforcing its long-term commitment to vertical integration — from semiconductors to software.

While Apple has not publicly commented on the report, its steady push into AR, AI, and custom hardware signals the company is not merely following trends — but aiming to shape them.

Apple Unveils iOS 18.4 Beta 4 for iPhone, Bringing Bug Fixes and New Features

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On Monday, Apple launched the iOS 18.4 Beta 4 update for iPhone, now available to developers and beta testers. This update continues the trend of the previous versions, offering more stability and bug fixes rather than introducing major new features. iOS 18.4 Beta 4 addresses several issues reported by users, particularly focusing on improvements to Apple Intelligence, Notifications, and Siri. In addition, it enhances support for Live Activity apps by enabling them to take advantage of the Nearby Interaction feature.

The changelog for iOS 18.4 Beta 4 reveals specific fixes for Apple Intelligence, the company’s suite of artificial intelligence services. One notable fix addresses an issue where Siri needed to be activated for Apple Intelligence to function properly in languages other than English (US). Users had also reported problems with Apple Intelligence features being unavailable or showing a “Downloading support…” message, and in some cases, a device reboot was required for the AI features to work. Apple claims that these issues have now been resolved with the latest beta update.

The update also brings improvements to Notifications, a feature that had experienced flickering or collapsing issues in previous versions. With the release of iOS 18.4 Beta 4, these problems have been addressed, ensuring a smoother experience with notifications. Additionally, the update resolves issues with Siri suggestions, particularly in languages other than English, which had been failing to complete successfully for some users. Following this update, Siri’s functionality in multiple languages has been restored to normal.

While iOS 18.4 Beta 4 does not introduce any groundbreaking new features, its focus on bug fixes and performance improvements indicates that Apple is continuing to refine the overall user experience. For those participating in the beta program, this update promises a more stable and reliable version of iOS as Apple works toward a final public release.