OpenAI has officially acquired io Products, the AI hardware startup co-founded by former Apple designer Jony Ive, in a deal reportedly valued at US$6.5 billion (A$9.8 billion).

The merger, first announced in May, brings together OpenAI’s advanced AI capabilities and Ive’s design vision to develop a new generation of AI-powered devices.

While the io Products team has now joined OpenAI, Ive’s independent design studio, LoveFrom, remains separate and will lead design and creative direction across OpenAI projects.

Ive’s former Apple colleagues and io co-founders, Scott Cannon, Evans Hankey and Tang Tan, have also transitioned to OpenAI, along with around 50 other engineers, designers and researchers.

OpenAI CEO Sam Altman and Ive say the upcoming products will be “unobtrusive, portable, and context-aware,” while steering clear of phones or glasses.

Rumours suggest a pocket-sized device designed to sit beside a laptop or iPhone which will offer screen-free, voice-first interaction.

The acquisition has not been without hiccups. OpenAI’s initial announcement was briefly taken down due to a trademark dispute with Iyo, a Google-linked hearing tech startup. The post has since returned, with updated branding.

Ive, who helped shape Apple devices from the iMac to the iPhone, left the company in 2019 to launch LoveFrom. His return to hardware design, especially in the AI space, marks a major shift for both OpenAI and the broader tech landscape.

The duo aims to redefine how users interact with technology.

“It’s just common sense to think there’s something beyond these legacy products,” Ive said.

Whether the result will be a hit, or go the way of Humane’s failed AI Pin, remains to be seen.