OpenAI is set to buy io, the AI device startup founded by former Apple executive Jony Ive, in an all-equity deal valued at approximately $6.5 billion. This recently announced acquisition marks OpenAI's largest-ever acquisition to date. The deal includes OpenAI's existing stake in io, while Ive will take on "deep creative and design responsibilities across OpenAI and io," according to an OpenAI statement shared with CNBC. While io will merge with OpenAI, Ive and his "creative collective," LoveFrom, is set to remain independent. This move comes weeks after OpenAI agreed to acquire AI-assisted coding tool Windsurf for $3 billion. Before that, OpenAI acquired analytics database company Rockset in 2024 for an undisclosed sum.
How OpenAI is trying to keep up with its competitors in the AI race
The latest acquisition announcement comes after OpenAI was recently valued at $300 billion in a SoftBank–led funding round. With this funding, the Sam Altman-led company scrambles to maintain its lead in the generative AI landscape , where rivals like Google, Anthropic, and Elon Musk’s xAI are pouring in major investments and frequently unveiling new offerings. One of the key parts of OpenAI’s strategy is bolstering its hardware capabilities.
To advance these ambitions, OpenAI tapped the former head of Meta’s Orion augmented reality glasses initiative on November 2024 to oversee its robotics and consumer hardware efforts. Caitlin “CK” Kalinowski said at the time that her role would
“initially focus on OpenAI’s robotics work and partnerships to help bring AI into the physical world and unlock its benefits for humanity.”
Last year, OpenAI also invested in Physical Intelligence, a San Francisco–based robotics startup that raised $400 million at a $2.4 billion post–money valuation. Other backers included Amazon founder Jeff Bezos, Thrive Capital, Lux Capital, and Bond Capital. Physical Intelligence is dedicated to “bringing general-purpose AI into the physical world,” developing large-scale AI models and algorithms to power real-world robots.
How OpenAI is trying to keep up with its competitors in the AI race
The latest acquisition announcement comes after OpenAI was recently valued at $300 billion in a SoftBank–led funding round. With this funding, the Sam Altman-led company scrambles to maintain its lead in the generative AI landscape , where rivals like Google, Anthropic, and Elon Musk’s xAI are pouring in major investments and frequently unveiling new offerings. One of the key parts of OpenAI’s strategy is bolstering its hardware capabilities.
To advance these ambitions, OpenAI tapped the former head of Meta’s Orion augmented reality glasses initiative on November 2024 to oversee its robotics and consumer hardware efforts. Caitlin “CK” Kalinowski said at the time that her role would
“initially focus on OpenAI’s robotics work and partnerships to help bring AI into the physical world and unlock its benefits for humanity.”
Last year, OpenAI also invested in Physical Intelligence, a San Francisco–based robotics startup that raised $400 million at a $2.4 billion post–money valuation. Other backers included Amazon founder Jeff Bezos, Thrive Capital, Lux Capital, and Bond Capital. Physical Intelligence is dedicated to “bringing general-purpose AI into the physical world,” developing large-scale AI models and algorithms to power real-world robots.
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