OpenAI Teams Up With iPhone Designer Jony Ive As ChatGPT Maker Makes Push Into Hardware, Apple Shares Slide

Apple Inc AAPL shares are moving lower Wednesday afternoon following multiple reports that OpenAI is set to acquire Apple Veteran Jony Ive’s AI device startup.

What Happened: Ive will team up with OpenAI as part of a $6.5 billion all-stock deal in which the ChatGPT maker will acquire Ive’s io Products, as reported by Bloomberg and others.

The famous designer, best known for his work on the iPhone and other iconic Apple products, will take his AI device development work to OpenAI as the company makes a push into hardware.

Ives reportedly said in an interview with OpenAI’s Sam Altman that he senses everything he has learned in his legendary career has led him to this moment.

Apple shares fell more than 2% on the news as OpenAI is seen as a future competitor to the iPhone maker. The report also indicates that it was thought that Apple and Ives may continue to work on product development together following Ive’s departure from Apple in 2019, but a product never came of it.

OpenAI will reportedly pay $5 billion for equity in io Products after the two companies reached a deal last year in which OpenAI took a 23% stake in the company. The deal is expected to be completed in the coming months pending regulatory approvals.

Along with Ive, OpenAI will add about 55 of io Products’ hardware engineers and software developers to the team. The planned products resulting from the tie-up are expected to be unveiled next year.

Apple shares have struggled to find momentum in 2025, with shares down approximately 19% year-to-date at last check. Apple has a 52-week high of $260.10 and a 52-week low of $169.21, according to Benzinga Pro.

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