OpenAI Acquires Jony Ive's io for $6.5 Billion
OpenAI has acquired io, the design firm founded by Apple design veteran Jony Ive, in a significant all-stock deal valued at $6.5 billion. This acquisition strengthens OpenAI's position in the rapidly evolving AI landscape.
Early Investors See Substantial Returns
The deal has proven particularly lucrative for early io investors. Klarna CEO Sebastian Siemiatkowski announced on X (formerly Twitter) that his family investment office, Flat Capital, invested in io just six months prior. This investment will now convert into OpenAI shares, yielding a substantial return.
Flat Capital confirmed its 34 million SEK (approximately $3.6 million) investment in io as part of a mini-portfolio of US-based AI companies.
Sutter Hill Ventures, a prominent Silicon Valley venture capital firm, also revealed its involvement as an early investor in io. While the exact details of their investment remain undisclosed, reports suggest they were a significant backer.
OpenAI's Strategic Move
OpenAI itself held a 23% stake in io, valued at around $1.5 billion, prior to the acquisition. This implies OpenAI paid approximately $5 billion in stock for the remaining shares. Other investors in io included Laurene Powell Jobs' Emerson Collective, Thrive Capital, Maverick Ventures, SV Angel, and the OpenAI Fund.
The acquisition of io brings Jony Ive's design expertise to OpenAI, potentially signaling a focus on developing user-friendly and aesthetically pleasing AI products and experiences.
