Jony Ive’s $6.5B deal with OpenAI has sent shockwaves through Cupertino. Apple’s stock dropped 2% as their former design guru joined forces with Sam Altman to create AI-powered consumer devices launching in 2026. With 55 employees moving to OpenAI’s new hardware division, this power move threatens Apple’s innovation edge. Talk about an awkward tech family reunion! The collaboration promises sleek, minimalist designs that might make your iPhone look positively ancient. The tech world holds its breath.
While Apple executives nervously adjust their turtlenecks, former design chief Jony Ive has just struck a massive $6.5 billion deal with OpenAI that might leave his old employer reaching for the antacids.
The acquisition of Ive’s AI devices startup, io, represents one of the largest hardware-focused deals in AI history and signals a seismic shift in Silicon Valley’s competitive landscape.
The partnership didn’t materialize overnight. Ive and OpenAI’s Sam Altman had been quietly collaborating for years before making things official.
Now the mastermind behind the iPhone, iPad, and Apple Watch will oversee design and creative direction at both OpenAI and io while maintaining his independent design firm, LoveFrom.
Ive’s design wizardry now spans across OpenAI, io, and LoveFrom—a triple threat making Apple’s innovation team sweat.
Apple’s stock took an immediate 2% nosedive following the announcement—and honestly, can you blame investors?
The company that once commanded the design world is watching its former creative genius take his talents to an AI powerhouse that’s already running circles around Apple’s modest AI efforts.
The deal creates a new hardware division at OpenAI led by Peter Welinder, absorbing io’s 55 employees and positioning the company to develop AI-powered consumer devices slated for release in 2026.
Think of it as the tech world’s version of a supergroup forming, but instead of music, they’re creating the next generation of devices that will make your current smartphone look like a rotary dial.
For OpenAI, snagging Ive represents the ultimate power move—combining world-class AI capabilities with unparalleled design expertise. The all-equity deal includes OpenAI’s existing 23% stake in io, meaning the company is effectively paying around $5 billion after accounting for its investment.
For Apple, it’s a double whammy: not only is their former design guru now working for the competition, but they’re also at risk of falling behind in both AI software and the consumer hardware innovations that once defined their brand.
The collaboration aims to create devices that move beyond traditional screens, envisioning a more intuitive way to interact with artificial intelligence than current smartphones and laptops offer.
This move aligns perfectly with industry projections showing the global AI market will reach $1.85 trillion by 2030, making the timing of this partnership particularly strategic.
The tech world is waiting with bated breath to see what emerges from this powerhouse collaboration.
Whatever it is, you can bet it will be sleek, minimalist, and probably lacking a headphone jack.
