OpenAI, the leading AI lab, acquired the one-year-old startup IO for $6.5 billion. IO was founded by former Apple executive Jony Ive. This all-stock deal aims to integrate AI into physical devices, creating a new line of products leveraging artificial general intelligence (AGI), a technology aiming for human-level intelligence. Currently, AI is predominantly found in apps, but this acquisition signals a push towards physical AI-powered gadgets.

Prepared by Jonathan Pierce and reviewed by editorial team.