Summary
- OpenAI has decided to invest a record $6.5 billion to acquire the startup io, founded by legendary Apple designer Jony Ive.
- Through this acquisition, OpenAI plans to accelerate the development of AI-dedicated devices and establish a department focused on AI device development, centered around hardware and software developers.
- OpenAI has announced a strategy to develop new products powered by its AI, aiming to release differentiated devices from competitors like Google, Apple, and Meta.
OpenAI is acquiring the AI device startup founded by Jony Ive, a legendary former Apple designer. The acquisition amount is $6.5 billion (approximately 9 trillion won), making it the largest merger and acquisition (M&A) in OpenAI's history. With this acquisition, OpenAI plans to develop dedicated devices specialized in AI.
On the 21st (local time), Sam Altman, OpenAI CEO, and Ive, founder of io, announced in a joint statement, "io, which has focused on developing products that inspire and open up possibilities, will now merge with OpenAI to work more closely with the research, engineering, and product teams in San Francisco." Ive, who was Apple's Chief Design Officer, oversaw the design of major products like the iPhone, iPod, and Mac alongside founder Steve Jobs. After leaving Apple in 2019, he established a design studio called 'LoveFrom' and founded io last year with former Apple colleagues, deciding a new company was needed for product development and production.
This M&A is the largest in OpenAI's history. The Wall Street Journal (WSJ) reported, citing multiple sources, that OpenAI has decided to acquire io entirely in stock. The acquisition amount is said to reach $6.5 billion. According to WSJ and Bloomberg, OpenAI already acquired 23% of io's shares at the end of last year. OpenAI is expected to establish a dedicated department for AI device development, focusing on io's 55 hardware and software developers. The deal is expected to be completed this summer, pending regulatory approval.
With this M&A, OpenAI plans to develop new devices powered by its AI, such as ChatGPT. CEO Altman emphasized, "Just as laptops didn't disappear with the advent of smartphones, our first product won't make smartphones disappear," but also noted, "The new product will be a completely new kind." Unlike competitors like Google, Apple, and Meta, which have their own hardware products, OpenAI plans to enter the market with new devices. WSJ reported, citing sources, that OpenAI and Ive's team are already working on developing new AI-equipped devices and have been exploring various options, including headphones, over the past two years.
Silicon Valley Correspondent: Song Young-chan 0full@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
![[Key Economic and Crypto Events for the Week Ahead] U.S. January CPI, etc.](https://media.bloomingbit.io/static/news/brief_en.webp?w=250)
