Apple sheds nearly $70bn as Jony Ive and Sam Altman hint at new AI device after $6.4bn acquisition

Nearly $70 billion was wiped from Apple Inc's (NASDAQ:AAPL, ETR:APC) market value amid mounting speculation that OpenAI and former Apple designer Jony Ive are preparing to unveil a next-generation artificial intelligence-supported device, following confirmation of OpenAI’s largest acquisition to date.

The ChatGPT maker is paying $6.4 billion to acquire io, a little-known hardware start-up launched a year ago by Ive and a group of former Apple colleagues. Ive, best known for designing the iPhone, iPad and MacBook Air, founded io under the umbrella of his creative collective, LoveFrom.

In a joint blog post, Ive and OpenAI chief executive Sam Altman said their collaboration had been in development for two years and had evolved from “tentative ideas” into “tangible designs”.

While the post provided few specifics, a promotional video accompanying the announcement suggested a product may already be in beta testing.

Altman said Ive recently gave him a prototype of the new device, calling it the 'coolest' piece of technology he'd seen.

Ive will not join OpenAI as an employee, but his team will lead the design of its future products, including software, according to reports. The io team will relocate to San Francisco to work more closely with OpenAI’s researchers and engineers.

The move signals a serious shift into hardware for OpenAI, which has quietly been hiring for roles in robotics and physical interface design.

Caitlin Kalinowski, who previously led Meta’s augmented reality glasses unit, recently joined OpenAI to focus on integrating artificial intelligence into the physical world. The company has also invested in the robotics start-up Physical Intelligence.

OpenAI is now valued at $300 billion, backed by deep-pocketed investors including Microsoft, which holds a 49% stake following a $13 billion investment, and SoftBank, which led a $40 billion funding round in March.

Ive, who was knighted in 2012 for his contributions to industrial design, left Apple in 2019 after more than two decades.

His post-Apple ventures have included work for Ferrari, Airbnb and Christie’s, as well as designing LoveFrom’s new San Francisco headquarters, which will now also house his work with OpenAI.

Apple's shares fell 2.3% in after-hours trading.