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OpenAI Completes $6.5 Billion Deal for Jony Ive’s io Products

LoveFrom’s independence will steer OpenAI’s design for a context-aware, screen-free AI device.

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FILE - Jason Rugolo, founder and CEO of iyO, shows the motherboard of the iyO One audio computer while being interviewed at the company's office in Redwood City, Calif., Tuesday, June 24, 2025. (AP Photo/Jeff Chiu, File)
FILE - Jason Rugolo, founder and CEO of iyO, wears the iyO One audio computer in his ears while being interviewed at the company's office in Redwood City, Calif., Tuesday, June 24, 2025. (AP Photo/Jeff Chiu, File)
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Overview

  • OpenAI has officially closed its $6.5 billion acquisition of io Products Inc., bringing the hardware startup into its San Francisco operations.
  • A trademark lawsuit by hearing device maker Iyo prompted OpenAI to temporarily remove its acquisition announcement, which has since been restored.
  • The io Products team has merged with OpenAI while Jony Ive’s LoveFrom remains independent and assumes deep design and creative responsibilities.
  • OpenAI is expanding beyond software to develop a new generation of AI-native hardware devices.
  • Unconfirmed reports indicate the first product may be a pocket-sized, screen-free gadget that adapts to users’ environments and needs.