OpenAI Buys Jony Ive's io for $6.5 Billion to Build AI Devices
Updated
Updated · Fortune · May 18
OpenAI Buys Jony Ive's io for $6.5 Billion to Build AI Devices
12 articles · Updated · Fortune · May 18
$6.5 billion gives OpenAI control of Jony Ive’s hardware startup io, a bet on a family of AI consumer devices beyond the smartphone.
The push rests on a broader industry view that phones and PCs were built to respond to commands, while AI agents need always-on devices that can see, hear and learn in real time.
Qualcomm CEO Cristiano Amon said glasses are the leading form factor because they sit near users’ eyes, ears and mouth, with jewelry, pins and pendants also in development.
Amon said 2026 will be “the year of agents,” with workloads starting to shift from phones by 2027-2028 and agentic devices potentially reaching hundreds of millions within five years.
6G networks and trust over access to intimate personal data are shaping the race, with Google, Meta and OpenAI all pursuing the hardware that could replace today’s primary personal device.
As AI agents replace app stores, who will truly control the next generation of personal technology?
When AI glasses turn us into 'walking cameras,' what new societal rules will be needed to protect privacy?
If smartphones are obsolete, why is the market projected to grow by nearly $400 billion within a decade?
OpenAI’s $448 Billion Ambient AI Gamble: Delays, Rebranding, and the Race for a Screenless Future
Overview
OpenAI's ambitious hardware project, originally set for a 2026 reveal, has been delayed to at least February 2027 due to both technical challenges and a major legal dispute over the 'io' brand name. The conflict arose because OpenAI chose the 'io' name in 2023, despite another company, iyO, having trademarked it in 2021. As a result, OpenAI was forced to abandon the 'io' brand and rebrand its hardware products. These setbacks highlight the importance of due diligence and show how legal and technical issues can significantly impact product timelines and strategic decisions.