Jony Ive Teams Up with OpenAI in $6.5B Power Move to Outshine iPhone

**Jony Ive’s $6.5B OpenAI Deal Aims to Dethrone iPhone with Revolutionary AI Devices**

OpenAI has acquired io Products, a San Francisco startup launched by Apple’s legendary designer Sir Jony Ive and former Apple designers, in a $6.5 billion (£4.8bn) deal announced Wednesday, setting the stage for a bold challenge to the iPhone’s dominance.

The acquisition positions Sir Jony, the British design icon behind Apple’s iPhone, Apple Watch, and iPad, to spearhead a new era of AI-driven devices. Taking a swipe at his former employer, Sir Jony criticized the “legacy” products and “decades old” technology dominating the market.

Sam Altman, OpenAI’s co-founder and chief, revealed that io was “formed with the mission of figuring out how to create a family of devices that would let people use AI to create all sorts of wonderful things.” He described io’s prototype as “the coolest piece of technology that the world will have ever seen,” adding, “AI is such a big leap forward in terms of what people can do that it needs a new kind of computing form factor to get the maximum potential out of it.”

Altman shared that Sir Jony called him to say, “This is the best work our team has ever done.” He noted, “Jony did the iPhone, Jony did the MacBook Pro. These are like the defining ways people use technology. It’s hard to beat those things. Those are really wonderful.”

Sir Jony, who led Apple’s design from 1992 to 2019 and was called Steve Jobs’ “spiritual partner,” hinted at market discontent, stating, “People have an appetite for something new, which is a reflection on a sort of an unease with where we currently are.”

The news sent Apple’s shares tumbling over 2%, compounding a 19% decline this year amid concerns over its sluggish AI progress and Donald Trump’s trade war impacting its China-based manufacturing. While Apple pioneered AI with Siri, it has lagged behind competitors, licensing ChatGPT last year but struggling to deliver a revamped Siri. The company recently admitted delays, stating the overhaul would “take us longer than we thought to deliver on these features,” and suspended an AI news summary feature after backlash from outlets like the BBC.

OpenAI, a leader in the AI race since ChatGPT’s 2023 launch, already held a stake in io and will pay $5 billion for the remaining shares, valuing io at $6.5 billion. The deal brings Sir Jony and 55 engineers, including ex-Apple designer Scott Cannon, to OpenAI. Io, backed by Laurene Powell Jobs, Steve Jobs’ widow, has developed an AI-based prototype poised to redefine technology.

Sir Jony, 58, born in Chingford, London, and knighted in 2012 for his contributions to design, overcame dyslexia to become a global design titan. After studying at Newcastle Polytechnic and co-founding a design consultancy in the US, he joined Apple, shaping its most iconic products. Now, his alliance with OpenAI signals a seismic shift in the tech landscape.

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