OpenAI Acquires Jony Ive’s Startup 'io' for $6.5 Billion in All-Stock Deal
Klarna CEO Reveals Early Investment in io
Just hours after Sam Altman and Jony Ive announced that OpenAI would acquire Ive’s company, io, in an all-stock transaction valued at $6.5 billion, Klarna CEO Sebastian Siemiatkowski shared a surprising revelation on X (formerly Twitter).
Siemiatkowski disclosed that Flat Capital, his family’s investment office, had invested in io six months earlier. With the deal being all-stock, those shares will now convert into shares in OpenAI's for-profit arm.
> “Excited that @FlatCapital was an investor in io and that we will now receive even more shares in OpenAI at a hefty return for an investment we did some 6 months ago,” he tweeted.
Flat Capital Confirms Investment in Secretive AI Startup
The tweet gained significant attention, prompting Flat Capital to issue a public statement confirming that io was the previously unnamed company it backed in a “mini-portfolio” of U.S. AI investments. The firm revealed it had invested 34 million SEK (approximately $3.6 million) in io.
Sutter Hill Ventures Also Linked to io
Further intrigue came from Luke Wroblewski, former Googler and now managing director at Sutter Hill Ventures. In a since-deleted tweet and LinkedIn post, Wroblewski congratulated io on the acquisition and acknowledged that Sutter Hill had also been an investor.
Though his posts were deleted after inquiries, multiple observers noted that Sutter Hill may have been the second largest investor in io. While TechCrunch could not confirm the size of their stake, Bloomberg later verified Sutter Hill’s involvement.
OpenAI Held the Largest Stake Before the Acquisition
According to Bloomberg, OpenAI already owned 23% of io prior to the acquisition — a stake reportedly worth $1.5 billion. This suggests that OpenAI paid roughly $5 billion in stock for the remaining shares. Other notable backers of io included:
- Emerson Collective (Laurene Powell Jobs’ firm)
- Thrive Capital
- Maverick Ventures
- SV Angel
- The OpenAI Fund (funded by outside investors)
Conclusion
The acquisition of io highlights OpenAI’s strategic ambitions in hardware and design, tapping into Jony Ive’s legendary product vision. It also showcases the rapid valuation growth in the AI sector, with early investors like Flat Capital seeing substantial returns in just six months. While some details remain private, this deal firmly positions io — and its backers — at the center of the evolving AI investment landscape.
