OpenAI Announces $6.5 Billion Acquisition of io Products
Deal News | May 21, 2025 | Wachtell, Lipton, Rosen & Katz
OpenAI has announced a strategic acquisition of io Products, a company co-founded by renowned designer Jony Ive, for a transaction value of $6.5 billion. The acquisition aims to bolster OpenAI's capabilities in developing, engineering, and manufacturing a new family of products tailored for the Artificial General Intelligence era. As part of this transaction, Jony Ive, alongside his creative collective known as LoveFrom, will be taking on comprehensive design and creative responsibilities within OpenAI. The deal is anticipated to significantly enhance OpenAI’s competitive standing in the tech space, augmenting their portfolio with innovative design and product engineering expertise. The law firm Wachtell, Lipton, Rosen & Katz acted as advisors for OpenAI in this pivotal acquisition.
Sectors
- Artificial Intelligence
- Product Manufacturing
- Design
Geography
- United States – OpenAI is based in the United States and the acquisition is a significant move in the US tech industry.
Industry
- Artificial Intelligence – The acquisition by OpenAI is directly related to the development of new AI products, emphasizing the relevance of AI.
- Product Manufacturing – io Products specializes in product engineering and manufacturing, highlighting the focus on physical product development.
- Design – Jony Ive's involvement underscores the importance of design in the creation of new products for OpenAI.
Financials
- $6.5 billion – The transaction value of OpenAI's acquisition of io Products.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| OpenAI | Buyer | Company | OpenAI is an artificial intelligence research laboratory consisting of the for-profit OpenAI LP and its non-profit parent company, the OpenAI Inc. |
| io Products | Target Company | Company | io Products is an engineering and product manufacturing company co-founded by Jony Ive. |
| Jony Ive | Co-founder & Design Leadership | Person | Jony Ive is a renowned designer and co-founder of io Products, known for his previous work at Apple. |
| LoveFrom | Creative Advisor | Company | LoveFrom is Jony Ive's creative collective involved in the design and creative responsibilities at OpenAI. |
| Wachtell, Lipton, Rosen & Katz | Legal Advisor | Company | A prestigious law firm advising OpenAI on the acquisition. |