OpenAI has officially acquired io, the tech design company founded by Jony Ive, in a high-profile all-stock deal valued at $6.5 billion. This strategic acquisition was announced on Wednesday and underscores OpenAI’s commitment to fusing cutting-edge AI technology with world-class design expertise. The acquisition will see io’s shares converted into OpenAI’s for-profit stock, marking a significant shift in ownership and expanding OpenAI’s design capabilities. Ive’s involvement is expected to enhance OpenAI’s product development, especially in consumer-facing innovations.
Klarna CEO Reveals Profitable Stake in io, Flat Capital Confirms Strategic Investment
Shortly after the deal was announced, Klarna CEO Sebastian Siemiatkowski revealed via social media that his family investment firm, Flat Capital, had purchased shares in io just six months earlier. As a result of the all-stock acquisition, Flat Capital’s stake in io will now be converted into shares of OpenAI, significantly boosting the investment’s value. Siemiatkowski expressed enthusiasm about the return, highlighting the foresight of the investment and its alignment with the rapidly growing AI sector.
OpenAI Buys Jony Ive’s io for $6.5B, Boosting AI Design Power and Rewarding Early InvestorsThe buzz surrounding Siemiatkowski’s post prompted Flat Capital to issue a public statement confirming its investment in io. The firm had initially kept the company’s identity under wraps when announcing a mini-portfolio of U.S. AI investments. The disclosure revealed that Flat Capital had invested approximately 34 million SEK (around $3.6 million USD) into io. The confirmation added legitimacy to Siemiatkowski’s tweet and generated further interest in io’s investor base and the valuation of its shares in the acquisition.
Deleted Posts Fuel Speculation About Sutter Hill’s Role in io Investment Deal
Adding to the intrigue, Luke Wroblewski, a managing director at Sutter Hill Ventures and former Google designer, congratulated io on the acquisition in a tweet and LinkedIn post—both of which were swiftly deleted. This triggered speculation about Sutter Hill Ventures being a significant investor in io, potentially the second largest. While TechCrunch could not verify this claim directly, Bloomberg later confirmed Sutter’s involvement, indicating that some major stakeholders were not initially disclosed or were hesitant to publicize their roles.
According to sources cited by Bloomberg, OpenAI itself held a 23% stake in io prior to the acquisition, making it the company’s largest single investor. This stake was valued at approximately $1.5 billion, meaning OpenAI paid around $5 billion in stock for the remaining 77%. Other key investors in io included Emerson Collective (led by Laurene Powell Jobs), Thrive Capital, Maverick Ventures, SV Angel, and the OpenAI Fund. Interestingly, the OpenAI Fund, which contributed to io’s backing, is financed by external investors and not by OpenAI’s own capital—reflecting the complex and layered investment ecosystem surrounding the deal.
