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Jony Ive to join OpenAI in $6.5b deal to rival Apple

Ambition is to develop an entirely new family of products necessitated the formation of a new, integrated entity

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  • OpenAI is positioning itself to enter the competitive hardware arena, seeking to offer new kinds of computing experiences that leverage advanced AI capabilities in unprecedented ways.
  • The combination is poised to deliver a new generation of AI-powered computers that are not only technologically sophisticated but also aesthetically compelling and intuitively designed.
  • Partnership exemplifies how leading companies are converging diverse fieldsโ€”artificial intelligence, hardware engineering, and industrial designโ€”to shape the future of computing.

OpenAI, the artificial intelligence powerhouse supported by Microsoft, announced its intent to acquire io, the AI startup founded by Jony Ive, the renowned former design head of Apple, to challenge the iPhone.

Ive was Appleโ€™s chief designer between 1992 and 2019. He was behind products including the iPhone, Apple Watch and iPad, and was described by Steve Jobs as his โ€œspiritual partnerโ€ at the company.

The acquisition, valued at nearly $6.5 billion in an allโˆ’stock transaction, highlights a significant convergence of cuttingโˆ’edge AI technology with worldโˆ’class product design expertise.

OpenAI will pay approximately $5 billion after accounting for its existing stake in io, underscoring a strategic investment that may redefine the evolving landscape of AI-enabled hardware and user experience.

The relationship between OpenAI and ioโ€™s creative collective, LoveFrom, has spanned two years of collaboration, reflecting a shared vision that extends beyond simple research partnerships.

Physical product innovation

Ive and OpenAI CEO Sam Altman emphasised that the ambition to develop an entirely new family of products necessitated the formation of a new, integrated entity.

The integration will see Jony Ive and his team assuming deep design and creative leadership roles within OpenAI and its upcoming operating system, ios, signaling a major expansion of OpenAIโ€™s capabilities beyond software and into physical product innovation.

โ€œPeople have an appetite for something new, which is a reflection on a sort of unease with where we currently are,โ€ Ive said.

This acquisition marks a critical milestone in the pursuit of AI-powered computing devices that blend powerful machine intelligence with thoughtful, human-centered design principles.

Competitive hardware arena

The alliance between OpenAIโ€™s cutting-edge technological prowess and Iveโ€™s celebrated design philosophy aims to create novel AI-driven products that transcend traditional notions of computers and user interfaces.

Altmanโ€™s social media commentary underscored this ambition, revealing plans to introduce the first collaborative product from this merger within the next year.

The significance of this deal extends beyond its financial valuation. By incorporating Jony Iveโ€™s design mastery, OpenAI is positioning itself to enter the competitive hardware arena, seeking to offer new kinds of computing experiences that leverage advanced AI capabilities in unprecedented ways.

The combination is poised to deliver a new generation of AI-powered computers that are not only technologically sophisticated but also aesthetically compelling and intuitively designed.

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