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Revolution in the tech world: OpenAI buys Jony Ives AI startup for $6.5 billion
OpenAI is investing $6.5 billion in Jony Ive's AI startup io Products to revolutionize ambient computing and replace smartphones.
Revolution in the tech world: OpenAI buys Jony Ives AI startup for $6.5 billion
The rise of artificial intelligence (AI) has sparked profound changes in the technology world. The influence of AI is particularly noticeable in software development and information search. However, until now AI has been mainly limited to apps on smartphones, which could soon fade into the background. On May 21, 2025, OpenAI CEO Sam Altman unveiled a big surprise: OpenAI will spend $6.5 billion to acquire AI hardware startup io Products, a deal that marks the largest acquisition in the company's history. Vietnam.vn reports that this project aims to develop a new generation of products for Artificial General Intelligence (AGI).
The startup io Products was founded by Jony Ive, Apple's former head of design, and Sam Altman. Ive, who left Apple in 2019 to go his own way with his design company LoveFrom, is now focused on creating a voice-controlled AI personal assistant with a team of about 55 engineers and researchers. This project is currently in the early development phase. Loud TechCrunch OpenAI could also seek a partnership with io Products instead of taking over the company completely.
Vision for Ambient Computing
Ive and Altman have a clear vision: They want to leave the smartphone age behind and develop ambient computing. This technology is intended to enable future devices to process the world in real time. Ive expressed a desire to create products that enrich humanity and criticized the “turbulence” of the smartphone era and the negative impact of social networks. However, his optimistic view of AI is accompanied by the need to take security concerns seriously.
The market for personal AI devices has increased significantly since 2024, however a number of devices, such as the Humane Ai Pin and Rabbit R1, have not achieved the desired success. This increases the pressure on io Products to develop innovative products that are less socially disruptive than the iPhone and better meet the needs of users.
Outlook into the future
Details on the new devices to emerge from the collaboration between OpenAI and io Products are expected by 2026. The project represents a significant shift in the evolution of technologies and promises to fundamentally change the way users interact with devices. The move to move into hardware development could help OpenAI position itself as a leading player in AI and redefine competition in the technology sector.