Target: iPhone Designer Jony Ive's io Acquired by OpenAI for £4.9bn
Deal News | May 22, 2025 | Business Cloud
OpenAI has made its largest-ever acquisition by purchasing Sir Jony Ive's hardware startup, io, for £4.9 billion in an all-equity deal. The acquisition aims to leverage Ive's design expertise to develop specialised AI hardware. OpenAI will invest approximately £3.7 billion to acquire the remaining 77% of io, having already held a 23% stake from previous collaborations. This acquisition signals OpenAI's strategy to expand beyond software-driven solutions, incorporating hardware that enhances AI-powered interactions. Jony Ive, renowned for his 27-year career at Apple, where he designed revolutionary products such as the iPhone and iPad, founded io with Scott Cannon, Evans Hankey, and Tang Tan. Post-acquisition, the io team will merge with OpenAI's San Francisco-based research and engineering teams, forming a nascent hardware division led by Peter Welinder, VP of Product at OpenAI.
Sectors
- Technology
- Artificial Intelligence
Geography
- United Kingdom – Sir Jony Ive's hardware startup io is based in the UK, highlighting the transaction's connection to UK innovation and talent.
- United States – OpenAI's headquarters and primary operations are based in the US, particularly in San Francisco, which is significant for the merger.
Industry
- Technology – The acquisition involves the development of AI-driven hardware and software solutions, showcasing technological advancement at its core.
- Artificial Intelligence – OpenAI's move to acquire a hardware startup indicates an expansion into AI hardware development, enhancing AI applications.
Financials
- £4.9bn – The all-equity deal price at which OpenAI acquired io.
- £3.7bn – OpenAI's investment to acquire the remaining 77% stake in io.
- £224bn – The approximate valuation of OpenAI following recent funding.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Sir Jony Ive | Founder of io | People | Former Apple design chief who co-founded io and now plays a pivotal role in its acquisition by OpenAI. |
| OpenAI | Acquirer | Companies | An AI powerhouse that acquired io, planning to expand its capabilities into hardware. |
| io | Target Company | Companies | A startup focused on hardware design founded by Jony Ive, acquired by OpenAI in this deal. |
| Sam Altman | CEO of OpenAI | People | Head of OpenAI, instrumental in orchestrating the acquisition of io to further AI hardware development. |
| Peter Welinder | VP of Product at OpenAI | People | Leads the new hardware division at OpenAI formed by the merger with io. |
| LoveFrom | Design and Creative Partner | Companies | Jony Ive's creative collective that will take on design responsibilities within OpenAI post-acquisition. |