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OpenAI’s Strategic Move: Acquiring Jony Ive’s AI Startup to Revolutionize Computing

In a groundbreaking move, OpenAI has announced the acquisition of Jony Ive’s AI devices startup, io, signaling a transformative shift in the way humans interact with artificial intelligence. OpenAI CFO Sarah Friar unveiled this strategic initiative during a fireside chat at the VivaTech 2025 conference in Paris, hinting at a future where screens and keyboards may become obsolete, paving the way for a multimodal interface that leverages sight, sound, and speech.

A Historical Shift in Computing

Sarah Friar drew parallels between OpenAI’s vision and past technological revolutions, likening the potential impact of this new AI interface to the introduction of the graphical user interface for PCs and the touchscreen for smartphones. These innovations not only simplified the use of technology but also redefined how users interact with devices. Friar suggested that the new AI device could eliminate the need for traditional texting, moving towards a more intuitive, multimodal interaction.

Redefining AI Interaction

Friar emphasized the importance of moving beyond the current modalities of AI usage, which remain tethered to outdated models. “In every tech era, there’s always been a new substrate that really brought it to life,” she remarked. The CFO indicated that OpenAI’s acquisition of io, led by the legendary Apple designer Jony Ive, could redefine human interaction with AI, focusing on a more natural and holistic approach.

Financial and Strategic Implications

The acquisition of io for $6.4 billion, averaging over $100 million per team member, underscores the value and potential OpenAI sees in the startup’s vision. Friar drew comparisons to the mobile revolution, where the initial adaptations simply mirrored desktop experiences on smaller screens. She highlighted the vision of using mobile capabilities to create entirely new experiences, as exemplified by Uber.

Cultivating a New Era of AI Devices

OpenAI is banking on Jony Ive and his team to once again revolutionize how people interact with devices. The team comprises veterans from Apple’s most iconic product lines, including key figures like Tang Tan, who played pivotal roles in the development of the iPhone, Apple Watch, and AirPods. This acquisition is just one aspect of OpenAI’s evolving business strategy to meet the growing demand for its AI models.

Expanding Infrastructure and Strategic Partnerships

To accommodate the increasing usage of its AI models — currently utilized by 500 million people weekly — OpenAI is expanding its infrastructure by forming partnerships with Oracle and CoreWeave, alongside its longstanding collaboration with Microsoft. The company is also investing in building its own data centers through a project named Stargate.

Towards a Public Benefit Corporation

Addressing the potential for OpenAI to become a publicly traded company, Friar disclosed plans for restructuring the for-profit segment into a public benefit corporation (PBC). This move, she stated, aligns with OpenAI’s long-term governance goals and opens the possibility of an initial public offering (IPO) in the future. The nonprofit arm of OpenAI will continue to play a crucial role in governance and mission alignment, even as the company works towards profitability.

Friar emphasized the importance of the nonprofit entity, which provides governance and aligns with the company’s mission, despite OpenAI’s current financial losses despite generating a $10 billion annual revenue run rate.

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Note: This article is inspired by content from https://www.pymnts.com/artificial-intelligence-2/2025/openai-cfo-secret-ai-device-to-usher-in-new-computing-era/. It has been rephrased for originality. Images are credited to the original source.