Sam Altman and Jony Ive's $6.5B collab tanks Apple stock
OpenAI CEO Sam Altman and former Apple chief designer Jony Ive announced their partnership on May 21, a deal both believe will bear revolutionary, AI-powered devices.
'We have the opportunity to completely reimagine what it means to use a computer,' Altman declared in a joint interview with Ive, who later said, 'I am absolutely certain that we are literally on the brink of a new generation of technology that can make us our better selves.'
Apple's shares fell 2.3% on the day of the announcement, extending their 17% decline year-to-date ahead of Wednesday's open in New York.
Altman and Ive plan to release a range of form factors (computer and phone) by the end of 2026, as well as a mystery, undisclosed design. Altman hinted that the two tech revolutionists 'Formed with the mission of figuring out how to create a family of devices that would let people use AI to create all sorts of wonderful things.'
The collaboration stems from OpenAI's $6.5 billion acquisition – the largest purchase in the company's history – of Ive's io, co-founded with former Apple executives Tang Tan, Scott Cannon, and Evans Hankey. Together, they assembled a 55-person team of world-leading hardware and software engineers, physicists, researchers, developers, and product manufacturing experts.
This acquire-hire gives Altman the expertise to challenge Apple's hardware market monopoly.
Ive's LoveFrom,, laden with ex-Apple employees like Bas Ording, Mike Matas, and Chris Wilson, is another addition to the deal. The collaborative design firm, which remains independent, boasting high-profile clients, such as Ferrari N.V. and Airbnb Inc, will assume design and creative responsibilities across OpenAI and io.
As Tim Cook navigates U.S. President Donald Trump's 25% tariff threat, Altman and Ive's partnership raises further concerns over Apple's future market dominance.
Amid a wave of high-level employee resignations, the second-largest company in the world has lagged behind in AI innovation, amplified by several development delays, including its most recent beta-embedded iOS 18.4 (which will include an AI-powered feature, Priority Notifications), initially scheduled to release in April 2025 before being postponed indefinably.
If there's anyone who can challenge Apple, it's Ive, a legendary tech designer Steve Jobs once referred to as his 'spiritual partner.' The British-born designer, responsible for the iPhone, iPad, iPod, iMac, and Apple Watch, led Apple's design team for twenty-seven iconic years (1992-2019).
'I have a growing sense that everything I have learned over the last 30 years has led me to this place and to this moment,' Ive spoke on his new venture with Altman.
With a lineup of industry experts and former Apple veterans at Altman and Ive's disposal, the merger appears equipped to challenge Cook's market share. As Apple stalls in its AI push, OpenAI-io could well leapfrog ahead. Apple has, at best, a year to respond.
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