OpenAI has announced its largest-ever acquisition, purchasing io, the AI device startup co-founded by legendary Apple designer Jony Ive, in a nearly $6.5 billion all-stock deal. This landmark move gives OpenAI a dedicated hardware division and brings Jony Ive—renowned for designing the iPhone, iPod, and Apple Watch also on board as creative head, along with a team of former Apple engineers.

The partnership aims to develop a new generation of AI-powered consumer devices, with the first products expected to debut next year. OpenAI CEO Sam Altman and Jony Ive have emphasized the need for innovative hardware form factors to fully realize the potential of generative AI, signaling a significant shift in the consumer technology landscape. The deal has already impacted the industry, with Apple’s shares dropping over 2% amid concerns about increased competition in AI hardware. This acquisition marks a pivotal moment for OpenAI as it seeks to merge cutting-edge AI technology with world-class product design, promising a wave of groundbreaking devices for the AI era.

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