Apple iPhone designer Jony Ive joins OpenAI in $6.5bn deal

Sir Jony Ive, a key British designer, is joining OpenAI. He is known for designing Apple's most iconic products. OpenAI's CEO, Sam Altman, expressed excitement about this partnership. He called Sir Jony the "greatest designer in the world."

OpenAI is acquiring Sir Jony's startup, io, for $6.5 billion (£4.7 billion). Mr. Altman hopes to create a new generation of AI-powered computers together. Sir Jony will take on significant design and creative roles at OpenAI.

AI software has advanced quickly in recent years, led by ChatGPT. However, creating new hardware has been challenging. Many recent attempts have failed to attract consumer interest and faced criticism from reviewers. Mr. Altman believes this partnership can succeed where others have not.

He stated they have an opportunity to re-imagine computer usage entirely. Sir Jony feels we are on the brink of a new technology generation. They are already working on a new "family of devices." Sir Jony mentioned that their first project has captured their imagination.

Mr. Altman has tested a prototype designed by Sir Jony's team. He described it as "the coolest piece of technology" ever seen.

Sir Jony worked at Apple for 27 years and helped revive the company with innovative products like the iPhone and iPod. He also designed the iMac in 1998 and the iPad in 2010. After leaving Apple in 2019, CEO Tim Cook praised him as a unique figure in design.

Following news of his partnership with OpenAI, Apple shares fell over 2%. After leaving Apple, he founded LoveFrom, collaborating with companies like Airbnb and Moncler. The merger announcement revealed that LoveFrom had been working quietly with OpenAI for two years.

The idea for io emerged from this collaboration last year. Both Sir Jony and Mr. Altman noted that developing new products required an entirely new company.

Before Wednesday's announcement, OpenAI held a 23% stake in io according to US media reports. Ben Wood from CCS Insight told BBC News it would be unwise to doubt Sir Jony’s ability to disrupt markets with his designs.

He added that OpenAI likely wants direct customer relationships instead of relying on other tech giants' devices or services.

Some companies like Humane AI and Rabbit are trying to create custom devices for AI use but face challenges too. Humane AI struggled with its AI Pin device due to battery life issues and high costs.

OpenAI sparked significant investment in AI after launching ChatGPT in 2022 and continues exploring areas like shopping and search against established tech firms.

This move into hardware comes as competitors such as Meta, Google, and Apple invest in advanced products like headsets and glasses due to AI advancements.