In a remarkable turn of events, the tech world was abuzz after the announcement of OpenAI’s acquisition of Jony Ive’s company, io, for a staggering $6.5 billion in an all-stock deal. This news not only sent ripples through the industry but also prompted Klarna’s CEO, Sebastian Siemiatkowski, to share his excitement on social media.
Siemiatkowski revealed that his family investment firm, Flat Capital, had made a strategic investment in io just six months prior to the acquisition announcement. With the nature of the deal being all-stock, the shares held by Flat Capital will now be converted into shares of OpenAI’s for-profit division, marking a significant financial gain for the firm.
“Thrilled to announce that @FlatCapital was an early investor in io, and we are set to receive a substantial return on our investment as we transition to shares in OpenAI,” Siemiatkowski tweeted, highlighting the fruitful outcome of their foresight in investing in innovative technology.
The excitement surrounding this investment led Flat Capital to publicly confirm their involvement with io, clarifying that it was the previously unnamed company they had backed in a recent announcement regarding their investments in a select group of U.S. AI firms. The firm disclosed that their investment amounted to 34 million SEK, approximately $3.6 million, showcasing their commitment to supporting groundbreaking technology.
Adding to the intrigue, Luke Wroblewski, a former Google designer and now managing director at Sutter Hill Ventures, also expressed his enthusiasm on social media. In a now-deleted post, he congratulated io on the acquisition, indicating that Sutter Hill Ventures was among the investors in this promising venture.
While the details of Sutter Hill’s investment remain somewhat unclear, reports suggest that they may have been one of the largest backers of io. Despite attempts to confirm this information, the firm has not responded to inquiries, and Wroblewski’s posts were removed shortly after they were noticed.
According to sources, OpenAI itself was the largest investor in io, holding a 23% stake valued at approximately $1.5 billion. This indicates that OpenAI allocated around $5 billion in stock for the remaining shares. Other notable investors in io included prominent firms such as Emerson Collective, Thrive Capital, and Maverick Ventures, among others. Interestingly, the OpenAI Fund, which also supported io, is backed by external investors rather than OpenAI’s own funds, further diversifying the investment landscape.