OpenAI announced Wednesday it is acquiring io, the secretive device startup co-founded by CEO Sam Altman and former Apple design chief Jony Ive, in an all-equity deal valuing the company at $6.5 billion. The ChatGPT maker will pay $5 billion for the 77% of io it did not already own, having held a 23% stake from a previous agreement. The acquisition is OpenAI’s largest to date.

As part of the deal, Ive and his design firm LoveFrom will lead all creative and design work at OpenAI. Ive, famous for designing the iPhone, iPod, iPad, and Apple Watch, will have an expansive role that includes input on future versions of ChatGPT, according to The Wall Street Journal. Io’s roughly 55 employees — many of them former Apple designers including Scott Cannon, Evans Hankey, and Tang Tan — will join OpenAI. LoveFrom will continue to operate independently.

In a nine-minute announcement video posted by OpenAI, Altman said io’s mission is to create ‘a family of AI devices’ that move users beyond screens. Ive said he is convinced ‘everything I’ve learned over the last 30 years has led me to this place and this moment.’ Bloomberg reports the first devices are slated for 2026. The deal puts OpenAI in direct competition with Apple in consumer hardware, and Apple’s stock fell 2% on the news. The group chat debate this week centers on whether Ive can succeed where other former Apple designers — like Humane’s founders — have stumbled.