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Tuesday, Jul 01, 2025

OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”

In a bold new move, OpenAI is acquiring Jony Ive’s secretive AI hardware startup, io, for six and a half billion dollars. The project’s aim? To create what Ive and OpenAI CEO Sam Altman are calling a "third core device"—a revolutionary gadget that joins the MacBook Pro and iPhone as a fundamental part of everyday tech use.


Not a Phone, Not Glasses—Something Entirely New

According to internal discussions leaked to The Wall Street Journal, the device will not be a smartphone or wearable like smart glasses. Ive, known for his iconic Apple designs, reportedly rejected the idea of developing a device that must be worn on the body. Instead, both he and Altman want to reduce people's reliance on screens.

The result is a screenless, pocket-sized device that is highly aware of its user’s environment and context. It’s designed to live quietly in a pocket or on a desk, serving as a seamless extension of the user—without ever becoming a distraction.

Altman described it to OpenAI employees as “the coolest gadget the world has ever seen,” after testing a prototype personally in his home.

Massive Ambitions and Quiet Development

The initiative, still under wraps to prevent copycats, is already in motion. Ive’s design team is working with suppliers to prepare for large-scale production. The goal: launch by the end of 2026, with the ambition to ship one hundred million units faster than any other consumer device in history.

Despite the secrecy, the vision appears to draw from Apple’s integrated hardware-software philosophy. Altman has hinted that while OpenAI doesn’t expect to sell one hundred million units on day one, it aims to reach that milestone faster than any other new product launch in tech history.

A Game-Changing Acquisition

The acquisition of io is OpenAI’s largest to date. Once finalized—pending regulatory approval expected by summer—it positions OpenAI not just as a leader in software and AI, but as a serious player in consumer hardware.

With Jony Ive’s legendary design expertise and OpenAI’s leadership in artificial intelligence, the tech world is now watching closely to see what this screenless “third core device” turns out to be.

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