OpenAI Makes $6.4 Billion Acquisition

OpenAI is acquiring a new startup from one of Apple's former architect, possibly paving the way for a hardware release.

Timothy St. John•Thursday, May 22, 2025•2 min read

Quick overview

OpenAI is acquiring the hardware startup io for $6.4 billion, founded by former Apple designer Jony Ive.
The acquisition has led to a 0.71% drop in Apple stock, reflecting investor concerns.
io will enhance OpenAI's design capabilities and may pave the way for future hardware developments.
This marks OpenAI's largest acquisition to date, further solidifying its position in the AI industry.

A hardware startup called io is being purchased by OpenAI for $6.4 billion. The startup was created by one of Apple’s architects, and the acquisition is causing Apple stock to fall.

OpenAI just made a huge purchase in a bid to improve their business.

Apple (AAPL) stock is down by 0.71% today after OpenAI announced they were buying a former Apple designer’s untested startup called io. The purchase will cost OpenAI $6.4 billion, and CEO Sam Altman said that the partnership between the two companies was one that has been in the works for two years.

Jony Ive created the io startup, and he was also instrumental in creating the iPhone as well. This marks the largest acquisition so far for OpenAI, which has positioned itself as one of the leaders of the AI revolution. They own ChatGPT, and the company was founded by Altman and Elon Musk.

What Does io Have to Offer?

The startup is completely untested, but Altman seems to have great confidence in them. Io was founded a year ago by Ive and some other former Apple employees. This startup is part of a larger endeavor known as LoveFrom, which is made up of engineers, artists, designers, musicians, and architects. This creative collective works with global brands to help them develop new products and content.

The support io will bring to OpenAI is going to be transformative. The startup team will take over all aspects of design for OpenAI, and that extends to its software as well. They will be working with OpenAI to develop products, research new technologies, and engineer existing products.

This could be the beginning of OpenAI’s efforts to release a hardware device. Though they have not announced anything to that end, there have been rumors that they are developing some kind of hardware that would make full use of their technology. OpenAI is now valued at $300 billion thanks to massive investments collected throughout the past few years.

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ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.