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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.

AI Labs Wage Bidding War for Elite Researchers as Talent Becomes Key Battleground

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The race to lead the artificial intelligence revolution is no longer just about compute power or datasets — it’s now centered on securing a small pool of elite AI researchers who can make or break the next generation of AI models. Companies like OpenAI, Google DeepMind, and Elon Musk’s xAI are aggressively courting this highly specialized talent, offering compensation packages in the tens of millions of dollars, luxury perks, and personal outreach from tech luminaries.

The explosive growth of generative AI following the 2022 release of ChatGPT has pushed the battle for talent to unprecedented levels, with some researchers receiving “professional athlete-style” incentives, including private jets, multimillion-dollar bonuses, and equity grants of over $20 million.

“The AI labs approach hiring like a game of chess,” said Ariel Herbert-Voss, a former OpenAI researcher. “They are like, do I have enough rooks? Enough knights?”

Elite Talent, Outsized Impact

Known internally as “ICs” (individual contributors), these researchers are seen as 10,000x engineers — a reference to the idea that in AI, the very best aren’t just 10 times better than average but can be 10,000 times more impactful, due to the leverage their innovations bring to large-scale model performance.

While the exact number of such talent is debated, industry insiders estimate there are only a few dozen to a thousand globally. With such scarcity, top labs are deploying every tool available to secure and retain them.

Top Offers and Retention Battles

  • OpenAI researchers have reportedly been offered retention bonuses of up to $2 million, plus equity increases exceeding $20 million, just to stay for one more year.

  • Google DeepMind has offered top researchers $20 million per year, while reducing vesting schedules on stock options to just 3 years, down from the typical 4.

  • Eleven Labs and SSI (founded by former OpenAI chief scientist Ilya Sutskever) have made competitive offers to lure away OpenAI talent, prompting preemptive counteroffers.

The bidding war has gotten so intense that OpenAI CEO Sam Altman famously tweeted in 2023 about the need for “10,000x researchers,” acknowledging their disproportionate value.

“It was actually financially not the best option that I had,” said Noam Brown, an OpenAI researcher recruited by several top labs, explaining that research resources and alignment with goals were more important to him than pure compensation.

Rising Stars and Strategic Hiring

To identify and cultivate new talent, data firms like Zeki Data have started using sports-style recruitment analytics, akin to the “Moneyball” approach, to discover undervalued researchers. Some companies, like Anthropic, have been recruiting heavily from theoretical physics and quantum computing backgrounds.

Meanwhile, Mira Murati, OpenAI’s former CTO, has poached over 20 employees for her still-stealth-mode startup, which is reportedly closing a record-breaking seed round based solely on its team strength.

The Bigger Picture

This frenzied battle for researchers is reshaping the AI landscape in Silicon Valley and beyond. With venture capital surging into early-stage AI startups — sometimes before they even launch a product — and top labs competing over a few hundred minds, the next major AI breakthrough may hinge less on hardware or scale and more on who can assemble the right intellectual firepower.

Grupo Werthein Launches $40 Million Generative AI Company ‘Illumia’ to Enhance Humanized Customer Interaction

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Grupo Werthein, the Argentina-based investment conglomerate, has launched a new generative AI company named Illumia, backed by an initial $40 million investment, the company announced on Wednesday. Illumia will focus on humanized AI solutions for sales, customer service, and business communication, blending multiple AI platforms to simulate human-like conversation.

“We aim to use generative artificial intelligence with digital assistants that can converse the same way humans can,” said Daniel Figueirido, CEO of Illumia, in a statement to Reuters.

The company’s AI service leverages existing AI tools and proprietary technologies to deliver solutions aimed at personalizing interactions between companies and their customers. It has already begun offering services to Werthein-controlled firms and third-party clients in Latin America.

Why It Matters

The investment signals a strategic push by Latin American firms to lead in AI personalization and customer engagement technologies, an area increasingly seen as critical for competitiveness in sectors such as telecom, media, and e-commerce.

“The key to the kingdom with this kind of investment is how do I combine each of these different platforms and technologies,” Figueirido said.

Illumia’s development comes at a time of both high enthusiasm and caution toward generative AI in the region. A recent Reuters study found that while 56% of Latin American respondents expressed excitement about AI, 50% voiced concerns over privacy and data confidentiality.

What’s Next

Figueirido envisions expanding Illumia’s reach beyond Latin America, scaling services across industries and geographies. While early clients have included firms within the Werthein portfolio — which includes DirecTV Latin America and Sky Brazil — the company is now positioning itself for regional and international growth.

Grupo Werthein’s move into AI reflects a broader trend among legacy conglomerates investing in next-gen technologies, with Illumia poised to play a leading role in AI-driven customer engagement and digital transformation in Latin America and beyond.