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OpenAI Just Bought Jony Ive’s Startup for $6.4B — and They’re Coming for Your iPhone’s Throne

You ever look at your phone and think, Man, this thing used to feel like the future… and now it just feels like a dopamine trap?
Well, Jony Ive — the guy who literally designed the iPhone — feels the same. And now, he’s teaming up with OpenAI to fix it.

Let’s unpack what just happened, because this could be the start of a whole new era in tech.

A $6.4 Billion Bet on the Next Big Thing

OpenAI just announced its biggest acquisition ever: it’s buying io, a secretive AI hardware startup founded by Jony Ive and a handful of Apple veterans, in an all-stock deal worth $6.4 billion.

Yes, billion with a “B.” And yes, Jony Ive — the same design genius who gave the world the iPod, the iPhone, the MacBook, and that very specific white earbud aesthetic.

He left Apple in 2019 to start his own design studio, LoveFrom, but in 2024 he quietly launched io with some old Apple colleagues. The goal? Build AI-powered devices that feel elegant, natural, and… not like the iPhone.

Not Another Screen — Something Entirely New

Here’s the wild part: the first product from this team won’t be a phone. Or glasses. Or even a screen.

It’s described as a pocket-sized, screen-free AI companion. Something you carry with you that talks to you, listens to you, understands you — like your own little Jarvis. But without frying your attention span or draining your soul like most gadgets today.

OpenAI CEO Sam Altman has called it a potential “third core device,” up there with your iPhone and MacBook. That’s a bold statement, but this isn’t just a passion project — they’re reportedly aiming to ship 100 million units.

That’s iPhone-level ambition.

And it tracks: we’re entering a phase where people want less screen time, not more. We’re craving tools that help us live better, not scroll more. The vibe is “what if tech made us feel human again?”

Jony Ive's Redemption Arc

Ive has spoken before about his regrets around the iPhone. It changed the world, sure, but it also created problems no one saw coming: endless scrolling, social media anxiety, screen addiction. That wasn’t the plan.

This new venture feels like a personal course correction. A chance to build something better — something you interact with in short bursts, not 6 hours a day. Think: fast, intuitive, invisible tech.

And in a poetic twist, he’s building it with the company behind ChatGPT — the AI that’s already redefining how we work, think, and communicate.

Not a Surprise, If You’ve Been Watching Closely

To be clear, OpenAI didn’t just discover io last week.

They already owned 23% of the company through their startup fund, and this acquisition comes on the heels of other hardware-related buys like Windsurf and Physical Intelligence. So yes, OpenAI’s been quietly assembling an Avengers team for bringing AI into the real world.

Altman even told investors that this deal could add $1 trillion to OpenAI’s long-term value. That’s trillion — not million, not billion. And while that sounds nuts, if they can create the iPhone of the AI era… well, it starts to make sense.

So What Happens Now?

Ive isn’t being absorbed into the machine — he’s taking on a central creative role at both OpenAI and io. Meanwhile, his design studio LoveFrom stays independent, giving him room to still work with other brands (he’s previously worked with Airbnb, Ferrari, and even a typeface collab with Kanye West).

Basically, he’s free to design the future, but this time with AI at the core.

Big Picture: This Isn’t Just a Gadget. It’s a Philosophy.

This whole move is bigger than just a new product. It’s a clear signal: OpenAI doesn’t just want to power apps on your screen — it wants to reimagine how you interact with technology entirely.

Not through buttons or apps, but through natural conversation. Through subtle, smart, always-there AI assistants that help you without taking over your life.

Less iPhone, more invisible magic. And if anyone can pull it off, it’s the guy who made aluminum feel emotional — paired with the company teaching machines how to think.

TL;DR (but written for humans):

• OpenAI is buying Jony Ive’s AI hardware startup io for $6.4B in stock.

• Ive, the guy behind the iPhone, will play a key design role at OpenAI.

• Their first device is a sleek, screen-free AI companion — not a phone or glasses.

• Sam Altman wants it to be your “third core device,” alongside your phone and laptop.

• The goal: build beautiful AI-powered tools that help, not hijack, your life.

This isn’t just a product launch. It’s the start of a quiet war on screens — and maybe the beginning of the next iPhone moment.

The announcement video here