OpenAI took a big step by acquiring io, the high-tech artificial intelligence machines startup. Founded by the former Apple design guru Jony Ive, this merger is estimated at $6.4 billion. The all-equity deal, which includes OpenAI’s existing stake in the company, marks a significant step for both entities as they aim to merge innovative design with advanced AI technologies.
Founded just a year ago, io was established by Jony Ive alongside fellow Apple alumni Scott Cannon, Tang Tan, and Evans Hankey. The new startup has made it their mission to create products that both inspire and empower users to achieve more every day. Yet after leaving Apple in 2019, Jony Ive started LoveFrom. He has since gone on to expand on his next thrilling frontier.
In a joint statement about the merger, OpenAI made it clear that there was a strategic vision at play with the merger.
“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,” – OpenAI
Ive’s team is going to be very influential in shaping OpenAI’s product line. From there, they’ll combine deep creative and design expertise into all aspects of both organizations. Through this merger, the goal is to leverage the best of both organizations to accelerate innovation across the wider AI application ecosystem.
What the Oracle acquisition illustrates is the deepening appetite from major investors for the AI space. Io has drawn a streak of impressive investors. High-profile investors, including Amazon founder Jeff Bezos and venture funds Thrive Capital, Lux Capital, and Bond Capital, are betting on the company. This unique investment base demonstrates the significant confidence in the potential of io’s technology and innovation.
Yes, even Sam Altman, CEO of OpenAI, sees the value in combining design and artificial intelligence. Engaged as Creative Director for Revolutions’s factory, he and Jony Ive jointly wrote a blog post to announce the partnership.
The company, which includes scientists from MIT and NASA, has received an undisclosed investment from OpenAI. This investment came about late last year, right before the recent io purchase. Physical Intelligence has closed a $400 million Series C at a post-money valuation of $2.4 billion. This investment highlights OpenAI’s focus on developing cutting-edge AI technologies for real-world applications.
Ive’s departure from Apple was the beginning of an interesting new chapter of his career. His departure looks all the more consequential after a long and influential tenure that largely defined many of its signature products. His experience in blending aesthetics with functionality positions him uniquely to contribute to OpenAI’s mission of “bringing general-purpose AI into the physical world.”
As the two teams join forces, they hope to reshape what it means for AI to be deeply integrated into our daily products and surrounds. This partnership promises to produce breakthroughs that combine innovative design principles with the latest artificial intelligence technology.