OpenAI is poised to acquire io, an AI device startup founded by former Apple executive Jony Ive, in an all-equity transaction valued at around $6.5 billion. This acquisition is the largest in OpenAI's history and includes OpenAI's existing stake in io. Following the deal, Ive will take on significant creative and design responsibilities spanning both OpenAI and io, as confirmed in a statement shared with CNBC. While io will be integrated into OpenAI, Ive and his design collective, LoveFrom, will remain independent entities.

This acquisition follows closely on the heels of OpenAI's recent purchase of Windsurf, an AI-assisted coding tool, for $3 billion. Prior to these deals, OpenAI acquired analytics database company Rockset in 2024, though the financial details of that acquisition were not disclosed.

OpenAI’s aggressive acquisition strategy comes in the context of a highly competitive AI landscape. Recently, OpenAI was valued at $300 billion after a major funding round led by SoftBank. This infusion of capital is part of the company’s efforts to maintain its lead in generative AI, where competitors such as Google, Anthropic, and Elon Musk’s xAI are making significant investments and launching new products.

A crucial element of OpenAI’s strategy involves strengthening its hardware capabilities, an area increasingly recognized as vital to the advancement of AI technology. To spearhead this effort, OpenAI appointed Caitlin “CK” Kalinowski in November 2024, the former head of Meta’s Orion augmented reality glasses project, to oversee its robotics and consumer hardware initiatives. Kalinowski highlighted that her role would focus on advancing OpenAI’s robotics work and forging partnerships aimed at integrating AI into the physical world, thereby unlocking tangible benefits for humanity.

In addition to internal efforts, OpenAI has also made strategic investments in robotics startups. Last year, it invested in Physical Intelligence, a San Francisco-based company focused on bringing general-purpose AI to physical robotics. Physical Intelligence raised $400 million at a post-money valuation of $2.4 billion. Other notable investors in Physical Intelligence include Amazon founder Jeff Bezos, Thrive Capital, Lux Capital, and Bond Capital. The company is working on developing large-scale AI models and algorithms designed to power real-world robotic applications, aiming to bridge the gap between AI software and physical robotics hardware.

Together, these acquisitions and investments reflect OpenAI’s comprehensive approach to solidifying its position at the forefront of AI innovation. By combining cutting-edge AI software development with enhanced hardware capabilities and strategic partnerships, OpenAI seeks to not only advance AI research but also translate these advancements into practical, real-world applications.

OpenAI’s acquisition of io is particularly significant because of the creative influence Jony Ive brings to the table. Known for his design leadership at Apple, Ive’s involvement is expected to shape the design and user experience of OpenAI’s future AI devices and products, adding a crucial dimension to the company’s growth strategy.

In summary, OpenAI’s recent moves — acquiring io, Windsurf, and Rockset, appointing experienced hardware leaders, and investing in robotics startups — collectively demonstrate the company’s ambition to lead the AI industry comprehensively. This multi-faceted approach aims to keep OpenAI competitive in a fast-evolving market dominated by heavy investments and rapid innovation from multiple global players.