OpenAI is buying iPhone designer Jony Ive’s AI devices startup for $6.4 billion
OpenAI Chief Executive Officer Sam Altman appears on screen during a talk with Microsoft Chairman and Chief Executive Officer Satya Nadella at the Microsoft Build 2025, conference in Seattle, Washington on May 19, 2025.
Jason Redmond | AFP | Getty Images
OpenAI said on Wednesday that it’s buying Jony Ive’s AI devices startup io for about $6.4 billion in an all-equity deal that includes its current stake in the company.
Ive is taking on “deep creative and design responsibilities across OpenAI and io,” OpenAI said in a statement. The company said that io is merging with OpenAI, while Ive and his “creative collective” called LoveFrom will stay independent.
In a blog post on Wednesday from OpenAI CEO Sam Altman and Ive, the pair said that io was founded a year ago by Ive, along with Apple alumni Scott Cannon, Tang Tan and Evans Hankey, who briefly took over Ive’s role at Apple after he departed.
“The io team, focused on developing products that inspire, empower and enable, will now merge with OpenAI to work more intimately with the research, engineering and product teams in San Francisco,” the post said.
OpenAI said it’s paying $5 billion given that it already owns 23% of the company.
The purchase is by far OpenAI’s largest and comes weeks after the company agreed to buy AI-assisted coding tool Windsurf for $3 billion. Prior to that, OpenAI acquired analytics database company Rockset for an undisclosed sum in 2024.
Ive announced in 2019 that he was leaving Apple, where he was the longtime chief design officer, to start LoveFrom. Airbnb said in 2020 that Ive was consulting with the company on hiring and future products. The New York Times reported last year that LoveFrom’s clients pay the firm up to $200 million a year and that its designers at the time were working on projects for Christie’s, Airbnb and Ferrarri.
LoveFrom says on its website that it was founded by Ive and designer Marc Newson, but the doesn’t say anything about what the company does or include any mention of io.
Apple chief design officer Jony Ive (L) and Apple CEO Tim Cook inspect the new iPhone XR during an Apple special event at the Steve Jobs Theatre on September 12, 2018 in Cupertino, California.
Justin Sullivan | Getty Images News | Getty Images
Ive is responsible for designing Apple‘s most iconic products, including the iPod, iPhone, iPad and MacBook Air. He also helped design Apple’s new Cupertino headquarters, called Apple Park, a project that began in 2004 with the campus officially opening in 2019.
News of the acquisition comes as OpenAI, which was recently valued at $300 billion in a funding round led by SoftBank, is rushing to stay ahead in the generative AI race, where competitors including Google, Anthropic and Elon Musk’s xAI are investing heavily and regularly rolling out new products. Part of staying ahead in that race includes shoring up its hardware operations.
To further its hardware ambitions, OpenAI hired the former head of Meta’s Orion augmented reality glasses initiative in November to lead its robotics and consumer hardware efforts. Caitlin “CK” Kalinowski wrote in an announcement at the time that the role would “initially focus on OpenAI’s robotics work and partnerships to help bring AI into the physical world and unlock its benefits for humanity.”
Also late last year, OpenAI invested in Physical Intelligence, a robot startup based in San Francisco, which raised $400 million at a $2.4 billion valuation. Other investors included Amazon founder Jeff Bezos. The startup focuses on “bringing general-purpose AI into the physical world,” according to its website, by developing large-scale AI models and algorithms to power robots.
WATCH: Ive and Altman teaming up
Cheng Xin | Getty Images
Airbnb reported second-quarter results on Wednesday that beat analysts’ expectations.
Here’s how the company did based on average analysts’ estimates compiled by LSEG:
- Earnings per share: $1.03 vs. 93 cents expected
- Revenue: $3.10 billion vs. $3.04 billion expected
Revenue increased 13% from $2.75 billion during the same period last year. The company reported net income of $642 million, or $1.03 per share, up from $555 million, or 86 cents per share, a year earlier.
In the third quarter, Airbnb expects to report revenue of $4.02 billion to $4.10 billion, or $4.06 billion in the middle of the range. Analysts were expecting $4.05 billion for the period, according to LSEG.
In a letter to shareholders, the company said it had a strong second quarter, even against a volatile macroeconomic backdrop. U.S. President Donald Trump’s sweeping tariff and trade policies plunged markets into chaos for much of April.
“Despite global economic uncertainty early in the quarter, travel demand picked up, and nights booked on Airbnb accelerated from April to July,” the company said.
Airbnb reported 134.4 million nights and seats booked, up 7% from a year ago and above the 133.35 million expected by StreetAccount.
Gross booking value, which Airbnb uses to report host earnings, service fees, cleaning fees and taxes, totaled $23.5 billion in the second quarter. That figure is above the $22.66 billion expected by analysts polled by StreetAccount.
Airbnb said it received authorization for new share repurchase program of up to an additional $6 billion of Class A common stock. The company said it repurchased $1 billion of Class A common stock during the second quarter, and previously had authorization to purchase $1.5 billion more as of June 30.
Airbnb shares were down slightly in extended trading. They’ve slipped 0.7% for the year as of Wednesday’s close, while the Nasdaq is up almost 10%.
Airbnb will hold its quarterly call with investors at 4:30 p.m. ET.
Doordash food delivery service in New York City on Feb. 13, 2025.
Danielle DeVries | CNBC
DoorDash shares climbed about 5% in extended trading on Wednesday after the food delivery company reported better-than-expected earnings and revenue for the second quarter.
Here’s how the company did compared to analyst estimates based on LSEG’s consensus:
- Earnings per share: 65 cents vs. 44 cents expected
- Revenue: $3.28 billion vs. $3.16 billion expected
Revenue jumped 25% from $2.63 billion a year earlier, DoorDash said in a press release. The company reported net income of $285 million, or 65 cents a share, after recording a loss of $157 million, or 38 cents per share, in the same period a year ago.
Orders increased 20% from a year earlier to 761 million. Gross order value (GOV) rose 23% to $24.2 billion.
DoorDash shares have soared 54% this year as of Wednesday’s close, lifting the company’s market cap to $109 billion. The Nasdaq is up almost 10% in 2025.
Doordash one day stock chart.
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