OpenAI Finalizes $6.5 Billion Acquisition of Jony Ive's 'io Products Inc.' for AI Hardware Development
5 Sources
5 Sources
[1]
OpenAI closes deal with Jony Ive's io.
OpenAI has officially closed its nearly $6.5 billion acquisition of io, the hardware startup co-founded by famous Apple designer Jony Ive, the company announced Wednesday. But it was careful to only refer to the startup as io Products Inc. OpenAI originally announced the deal, and its plans to create dedicated AI hardware, with a viral video featuring its CEO Sam Altman and Ive. The video has since been scrubbed from its website and social media channels due to a trademark lawsuit from Iyo, the hearing device startup spun out of Google's moonshot factory. The blog post initially announcing the acquisition was also scrubbed from OpenAI's website due to the lawsuit, but it's now back up. "The io team, focused on developing products that inspire, empower and enable, will now merge with OpenAI to work more intimately with the research, engineering and product teams in San Francisco," the blog post states.
[2]
OpenAI Closes $6.5 Billion Deal to Buy Jony Ive's Device Startup
OpenAI has completed its nearly $6.5 billion all-stock deal to buy an AI device startup co-founded by Apple Inc.'s former design chief Jony Ive, cementing the ChatGPT maker's push into the hardware market. The purchase -- the largest in OpenAI's history -- will provide the company with a dedicated unit for developing AI-powered devices. Acquiring the secretive startup, named io, also will secure the services of Ive and other former Apple designers who were behind iconic products such as the iPhone.
[3]
OpenAI and Jony Ive's startup seal the deal
OpenAI's deal with Jony Ive's startup is a done deal. Ive's io has officially merged with the ChatGPT maker in a deal reportedly worth $6.5 billion. The companies announced the purchase in May. Jony Ive and his LoveFrom design studio remain independent. Meanwhile, io's co-founders, Scott Cannon, Evans Hankey and Tang Tan, are now OpenAI employees. (Around 50 other io engineers, designers and researchers are, too.) OpenAI and Ive are currently working on "a family of AI products for everyone." In May, Sam Altman and Ive dropped some hints about what to expect from their first product. They said it will be unobtrusive, portable and fully aware of its surroundings and the user's actions. It reportedly won't be a phone or a pair of glasses, which were likely the first two guesses for most people. For the uninitiated, Ive was a trusted collaborator and confidant of Steve Jobs during the creative explosion that produced some of the most influential tech products ever made. Ive left Apple in 2019 to form LoveFrom. He and Apple parted ways three years later.
[4]
OpenAI Finalizes Deal for Jony Ive's 'io' AI Hardware Company
OpenAI has completed its acquisition of Jony Ive's AI startup io Products, OpenAI said today in a letter from CEO Sam Altman and Ive. The io Products team has now officially merged with OpenAI, though Jony Ive and his LoveFrom design firm remain independent. Ive and LoveFrom have taken over "deep design and creative responsibilities" at OpenAI. OpenAI paid an estimated $6.5 billion for io. OpenAI first announced plans to purchase Jony Ive's startup back in May, and at the time, the two shared a video on their future plans. Ive and Altman are creating a new family of AI devices. "The products that we're using to deliver and connect us to unimaginable technology, they're decades old," said Jony Ive in the acquisition announcement. "It's just common sense to at least think surely there's something beyond these legacy products." Ive will design the AI device that OpenAI will eventually launch, and several former Apple design employees who co-founded io with Ive are also moving to OpenAI. While Ive provides design, OpenAI will handle the AI expertise. Recent information indicates that Ive and Altman's first device won't be an in-ear device or wearable, and will instead sit in a pocket or on a desk alongside a Mac and an iPhone. Other rumors suggest that the pocket-sized product will be contextually aware of the wearer's surroundings and life, providing insight screen-free.
[5]
OpenAI closes its deal to acquire Jony Ive's startup, tweaks branding after legal dispute
The goal is to create a family of AI devices that help people use AI to create "all sorts of wonderful things," according to OpenAI CEO. OpenAI has officially completed its acquisition of io, the startup founded by former Apple design chief Jony Ive. However, the company is now carefully referring to the startup as "io Products Inc."- a change likely made to avoid legal issues. The original announcement about the deal was taken down from OpenAI's website due to a trademark dispute with a different company named Iyo, a hearing device startup that came out of Google's experimental lab. That blog post is now live again, but with an updated message to reflect the branding changes. Also read: Samsung Galaxy Z Fold 7, Z Flip 7 and Z Flip 7 FE India price, offers, availability, colours and more "We're thrilled to share that the io Products, Inc. team has officially merged with OpenAI. Jony Ive and LoveFrom remain independent and have assumed deep design and creative responsibilities across OpenAI," the updated post states. The startup is expected to play a key role in OpenAI's plans to create new AI hardware. Jony Ive is best known for designing some of Apple's most iconic products. Ive and his design firm LoveFrom will lead creative and design work at OpenAI but will continue to operate independently. Also read: Samsung Galaxy Z Fold 7 vs Z Fold 6: Price, camera, display, battery, features and more OpenAI had originally announced the deal with a video featuring its CEO, Sam Altman, and Jony Ive. In that video, Altman explained that the goal is to create a family of AI devices that help people use AI to create "all sorts of wonderful things." The closing of the deal marks a new chapter for OpenAI, as it teams up with one of the most influential designers of our time. Together with Jony Ive, the company is set to reimagine how users interact with AI through thoughtfully designed hardware. Also read: Apple's design team will report directly to Tim Cook after Jeff Williams' exit
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OpenAI has completed its acquisition of Jony Ive's AI hardware startup, now carefully referred to as 'io Products Inc.' The $6.5 billion deal aims to develop innovative AI-powered devices, merging Ive's design expertise with OpenAI's AI capabilities.
OpenAI Acquires Jony Ive's Startup for AI Hardware Development
OpenAI, the company behind ChatGPT, has officially completed its acquisition of 'io Products Inc.', a hardware startup co-founded by former Apple design chief Jony Ive. The deal, valued at nearly $6.5 billion in stock, marks OpenAI's largest acquisition to date and signifies a major push into the AI hardware market 12.
Strategic Merger and Rebranding
Source: Bloomberg Business
The merger brings together OpenAI's artificial intelligence expertise with the hardware design capabilities of Ive's team. The acquired startup will now operate as a dedicated unit within OpenAI, focusing on developing AI-powered devices 2. However, the company has carefully rebranded the acquisition as 'io Products Inc.', likely due to a trademark dispute with Iyo, a hearing device startup spun out of Google's experimental lab 15.
Key Players and Their Roles
Source: engadget
While Jony Ive and his LoveFrom design studio will remain independent, they have assumed "deep design and creative responsibilities" at OpenAI 4. The deal also brings on board io's co-founders Scott Cannon, Evans Hankey, and Tang Tan, along with approximately 50 engineers, designers, and researchers who are now OpenAI employees 3.
Future Product Plans
OpenAI and Ive are collaborating on "a family of AI products for everyone" 3. Although specific details are scarce, early hints suggest the first product will be unobtrusive, portable, and contextually aware of its surroundings and the user's actions. Contrary to initial speculation, it reportedly won't be a phone or a pair of glasses 34.
Impact on OpenAI and the Tech Industry
This acquisition represents a significant step for OpenAI in its evolution from a pure AI research company to a more product-focused organization. By securing the services of Ive and his team, known for designing iconic products like the iPhone, OpenAI aims to create AI devices that could potentially reshape how users interact with artificial intelligence 25.
Challenges and Controversies
The acquisition process wasn't without hurdles. OpenAI initially announced the deal with a viral video featuring CEO Sam Altman and Jony Ive. However, this video and the original blog post were temporarily removed due to the trademark lawsuit from Iyo 15. The rebranding and careful wording in subsequent communications highlight the legal sensitivities surrounding the deal.
As OpenAI ventures into hardware development, this merger sets the stage for a new era of AI-integrated devices. The combination of OpenAI's AI prowess and Ive's design philosophy could potentially lead to groundbreaking products that reimagine how we interact with AI in our daily lives 45.
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