OpenAI has officially closed its $6.5 billion acquisition of io Products Inc., the hardware company co-founded by legendary Apple designer Jony Ive. This marks a major step forward in OpenAI’s broader vision to create deeply integrated AI hardware devices powered by ChatGPT.

While the partnership was announced back in May with a high-profile video featuring CEO Sam Altman and Ive, all public references to the deal were abruptly pulled after a trademark dispute with a similarly named AI startup.

The legal challenge is still playing out, but OpenAI has now reintroduced the project publicly. The company has done so with a more cautious rebranding and has not restored the original launch video.

What’s clear now is that the collaboration is back on track and moving full speed ahead.

Ive and his boutique design firm LoveFrom remain independent but will play a key creative role in designing hardware products across OpenAI.

The plan is to reimagine what a personal AI device could be when designed from scratch. Altman has already tested an early prototype built by Ive’s team, and while no product has been officially announced yet, the timeline points to a potential launch sometime in late 2026.

Why It Matters: By bringing hardware in house through this acquisition, OpenAI is betting that future AI experiences must be fully integrated. Smart assistants need purpose built devices that are seamless, private, and deeply personal. Direct control over the software layer and the physical interface positions OpenAI to shape the next generation of AI platforms.

• The Deal’s Done, Despite the Noise: OpenAI announced on July 9 that its $6.5 billion acquisition of io Products Inc. is officially complete. Earlier mentions of the deal were scrubbed due to an ongoing lawsuit with iyO, another AI startup backed by Google, but the project is now publicly acknowledged again under the new legal-safe name “io Products.”

• Jony Ive Isn’t Going Anywhere: Ive is not joining OpenAI as a full-time executive. Instead, he and his team at LoveFrom will remain an external partner, leading creative and design work across OpenAI’s projects. This setup allows Ive to shape product direction without becoming part of OpenAI’s internal org chart.

• Prototype Already Exists: Sam Altman has reportedly tested early versions of a device built by the io team. The technical specs remain unknown, but the goal is to deliver an AI-native product that is more advanced and more personal than today’s phones or smart assistants.

• The Unresolved Legal Case: The dispute centers on potential trademark confusion, as iyO claims its team showed early demos to io execs before the OpenAI acquisition. While the case is still active, it seems unlikely to derail product development or the roadmap. At worst, a rebrand of the hardware may be necessary down the line.

• Expect a Long Runway: No official product has been announced yet as OpenAI is taking its time to get the design and experience right. However, sources suggest that the first release window is targeted for the end of 2026. That gives the company enough time to align hardware innovation with future advances in ChatGPT capabilities.

Go Deeper -> A letter from Sam & Jony – OpenAI

OpenAI closes its deal to buy Jony Ive’s io and build AI hardware – The Verge

ChatGPT hardware confirmed, as OpenAI closes $6.5B deal for Jony Ive’s startup – BGR