About a month ago, OpenAI scrubbed any mention of the $6.5 billion purchase of io, Jony Ive’s startup that will manufacture ChatGPT hardware for the AI firm.
The deal was announced in mid-May through a surprising video featuring Sam Altman and Jony Ive. The two explained why they partnered on the project and teased the ChatGPT io device. Ive and his team of well-known former Apple designers and engineers had already built a prototype that Altman tested.
Some wondered whether either party had second thoughts. Was the deal off? Had the first of many ChatGPT devices already been canceled?
I explained at the time that OpenAI can’t afford to navigate the AI era without its own hardware. We’re heading toward a future where smart devices like phones and computers will have built-in AI assistants that are far more powerful than today’s ChatGPT and Gemini. These assistants will also be much more personal, since they’ll know everything about us to offer helpful support throughout the day.
To make that possible, AI companies will need to control both software and hardware. That’s the only way to ensure the AI assistant experience is both private and secure. With or without Jony Ive’s io, OpenAI would still need to build ChatGPT hardware.
Last month we learned why OpenAI had to remove any mention of io from its website. The deal hadn’t fallen through, but legal issues had come up.
A different AI startup working on similar hardware sued OpenAI. It’s named iyO and is partly funded by Google. The startup had previously met with io execs before OpenAI announced the acquisition of Jony Ive’s company. io execs were shown demos of iyO’s wearable computers, and iyO even pitched itself to OpenAI, but the offer was declined.
While the trial is still ongoing, OpenAI had to temporarily scrub references to io from its site, which may have confused some ChatGPT users.
Fast-forward to July 9th, and OpenAI confirmed on X that the $6.5 billion acquisition of io has been finalized.
“The io Products, Inc. deal has officially closed, and we’re thrilled to welcome the team to OpenAI,” the update reads. “Jony Ive & LoveFrom remain independent. They’ll have deep design & creative responsibilities across OpenAI.”
The post on X, shown above, also links to the previously deleted announcement on OpenAI’s blog. The Altman-Ive video is still missing, but the announcement itself closely mirrors the original one from May. The updated page includes the same quote as the X post.
OpenAI now refers to Jony Ive’s company as io Products instead of just io. The name doesn’t really matter as long as Ive and his team of skilled engineers deliver great ChatGPT hardware. After Wednesday’s announcement, that seems more likely than ever.
As for the iyO trial, it could be a while before there’s a verdict. Even if OpenAI loses and io Products has to rebrand, it won’t affect the development of ChatGPT hardware.
On that note, the first ChatGPT product might not launch until late 2026 at the earliest.
