OpenAI Acquires AI Startup Ivy for $6.5B, Expands into Hardware
OpenAI Makes $6.5B Hardware Play with Ivy Acquisition
July 10, 2025 — OpenAI has completed its largest acquisition to date, purchasing AI hardware startup Ivy for $6.5 billion in an all-stock transaction. The deal signals the AI giant's strategic expansion into physical product development under the guidance of Apple's former design visionary Jony Ive.
The Hardware Gambit
The acquisition brings Ivy's parent company io Products and its co-founder Jony Ive into OpenAI's orbit. While Ive's design firm LoveFrom remains independent, the Apple alumnus will take a hands-on role in shaping OpenAI's hardware division. This partnership combines:
- OpenAI's industry-leading AI capabilities
- Ive's legendary product design expertise (iPhone, iPad, MacBook)
- Ivy's specialized AI device development team
Image source note: The image was generated by AI, and the image licensing service provider is Midjourney.
Overcoming Obstacles
The transaction faced regulatory scrutiny and a trademark challenge regarding the "io" brand name in June, temporarily forcing OpenAI to remove promotional materials. An Ivy representative dismissed the legal action as "baseless," and the deal ultimately cleared all hurdles.
Strategic Implications
OpenAI CEO Sam Altman emphasized the acquisition's dual benefits:
- Enhanced hardware capabilities to complement AI software
- Tighter integration between technology and user experience
"With Jony's team joining forces with our researchers," Altman stated, "we can create devices that aren't just powerful, but beautiful and intuitive."
Industry analysts note this move positions OpenAI against tech giants developing integrated AI ecosystems, including:
- Google's Pixel hardware line
- Amazon's Alexa-enabled devices
- Apple's rumored AI home products
The deal follows OpenAI's gradual shift from pure software to multimodal systems requiring specialized hardware.
Key Points:
- Record transaction: OpenAI's largest acquisition at $6.5B
- Design powerhouse: Jony Ive to lead product development
- Market expansion: First major foray into consumer hardware
- Regulatory clearance: Overcame trademark dispute in June