OpenAI said it was buying IO, a start-up founded by Mr. Ive, the designer of the iPhone, to usher in a new era of artificial intelligence hardware.

The $6.5 billion deal brings together the maker of ChatGPT and one of the world's most famous product designers in a venture to create new AI-enabled devices.

Jony Ive, Apple’s former head of design, will take over design at OpenAI after the Sam Altman-led company acquired Ive’s hardware startup in a deal valued at $6.5 billion, with the new pairing expected to unveil a product within the next year as a potential competitor to Ive’s former employer.