OpenAI is making a big move into hardware. The company just bought a startup called LoveFrom, founded by famous designer Jony Ive, for $6.5 billion. This news was reported by The New York Times and confirmed by OpenAI in a blog post.
Jony Ive and his team will keep working independently, but about 50 engineers, designers, and researchers will join OpenAI. They’ll work with OpenAI’s team to develop hardware that helps people interact with OpenAI’s tech.
The deal is a big one, but OpenAI didn’t say if it’s paying cash or stock. The Wall Street Journal reports it’s an all-stock deal. OpenAI still isn’t profitable, but it has a big investment from Microsoft – over $13 billion. In return, OpenAI will give Microsoft 20% of its revenue until 2030.
When asked about the finances, OpenAI CEO Sam Altman said the media worries too much about the company’s money. He said, “Don’t worry about it, thanks for caring.”
The deal needs approval from regulators. Sam Altman and Jony Ive told The Times they want to create “great products that elevate humanity.” Before this, Altman invested in a startup called Humane, which made an AI pin. HP bought that company for $116 million, which is less than Humane hoped for.
Now, the LoveFrom team will work with OpenAI’s research, engineering, and product teams in San Francisco to make inspiring products. OpenAI already owned 23% of LoveFrom after a deal last year. Now, it’s paying about $5 billion to control the whole startup.
We’ll have to wait and see what OpenAI’s future products look like. A YouTube video explains that the goal is to “build an AI product family for everyone.” This might take years, and some things Jony Ive’s team works on might never see the light of day.