Apple Inc. (NASDAQ: AAPL) shares fell over 2% following OpenAI’s announcement of its acquisition of io, an AI hardware startup founded by former Apple design chief Jony Ive. The $6.5 billion all-stock deal marks OpenAI’s largest acquisition to date and signifies its strategic move into AI hardware development.
Jony Ive, renowned for his role in designing iconic Apple products like the iPhone and MacBook, will assume a leading creative position at OpenAI. The acquisition brings in a team of 55 employees from io, including other former Apple executives, to spearhead the development of innovative AI devices.
This development has raised concerns among investors about increased competition in the AI hardware space, potentially impacting Apple’s market share. The market’s reaction reflects apprehension over Apple’s position amid rapid advancements by competitors in integrating AI into hardware.
