OpenAI has announced two significant strategic initiatives: the acquisition of io Products, an AI hardware startup co-founded by former Apple design chief Jony Ive, and a partnership with G42, a leading UAE-based technology holding group. These moves mark OpenAI's expansion into consumer hardware and its commitment to deploying advanced AI capabilities in the Middle East.

On May 22, 2025, OpenAI acquired io Products for approximately $6.5 billion. This acquisition signifies OpenAI's entry into the consumer hardware market, aiming to develop AI-native devices that transcend traditional interfaces.

Jony Ive, renowned for his role as Apple's Chief Design Officer, was instrumental in designing iconic products such as the iPhone, iPad, and iMac. After departing Apple in 2019, Ive founded LoveFrom, a design firm that collaborated with various companies, including Airbnb and Ferrari. In 2024, he co-founded io Products, focusing on AI hardware development.

OpenAI acquired full ownership of io Products, integrating its 55 employees into OpenAI's team. Ive will assume a key creative role within OpenAI, though he will not become a formal employee. This partnership reflects OpenAI CEO Sam Altman's confidence in Ive’s design vision and the company's commitment to creating consumer AI devices.

This move positions OpenAI to develop dedicated AI hardware, potentially rivaling existing consumer devices. Altman envisions AI as the next major tech platform, requiring specialized devices to unlock its full potential. The collaboration with Ive's team is expected to yield new hardware products, with initial unveilings anticipated next year.

On the same day, OpenAI announced a partnership with G42 to deploy advanced AI capabilities optimized for the UAE and the broader region. This collaboration aims to integrate OpenAI's generative AI models into sectors such as financial services, energy, healthcare, and public services, leveraging G42's substantial AI infrastructure.

Founded in 2018 and based in Abu Dhabi, G42 is an Emirati artificial intelligence development holding company focused on AI across various industries, including government, healthcare, finance, oil and gas, aviation, and hospitality. The company is chaired by Tahnoun bin Zayed Al Nahyan, the UAE's national security advisor.

The partnership will focus on leveraging OpenAI’s generative AI models in domains where G42 has deep expertise. OpenAI will work with G42 to accelerate the solution development process, ensuring that organizations can best leverage the power of generative AI in their specific use cases. G42 will prioritize its substantial AI infrastructure capacity to support OpenAI’s local and regional inferencing on Microsoft Azure data centers.

This collaboration signifies OpenAI's commitment to expanding its global footprint and deploying AI solutions tailored to regional needs. By partnering with G42, OpenAI aims to empower businesses and communities in the UAE and the broader region with effective AI solutions.

OpenAI's entry into the consumer hardware market and its partnership with G42 highlight a strategic shift towards integrating AI into everyday devices and services. This could accelerate the adoption of AI technologies across various sectors and regions.

The acquisition of io Products and the partnership with G42 represent significant investments in AI development and deployment. These moves could stimulate economic growth by fostering innovation, creating jobs, and attracting further investments in the AI sector.

The partnership with G42 underscores the UAE's ambition to become a global leader in AI. It also reflects the strategic importance of the Middle East in the global AI landscape and the potential for international collaborations to drive technological advancements.

These developments mark a significant evolution in the AI industry landscape, highlighting the growing convergence of AI software and hardware and the importance of strategic partnerships in deploying AI solutions globally.