Ipe is an excellent wood for outdoor use, and indoor as well except for two things. First, it is uncommonly hard. The Janka scale is used to measure wood hardness, and if you Google on it, you will find it's at the extreme high end of the scale. That means you must have sharp tools and must sharpen them often. Carbide tools will help, but even they will wear if you do a lot of it. A couple chairs should be no problem. I have no aversion to sharpening now that I am set up for it, but if I were working on this stuff I'd plan on resharpening my tools daily. 
The second and a relatively minor problem is that it's an oily wood. That means before you finish or glue you MUST immediately wipe the surface with acetone, otherwise you will have glue up failure, and any coating will peel quickly.
As far as finishing goes, Ipe is extremely rot resistant. You don't need to do anything to it, however the surface oxidizes to a gray as almost all wood does when exposed to the elements. If you want to preserve the surface, I stole this from another site and it makes sense
Penefin for hardwood decks
Waterlox Marine Sealer & Finish
Sikkens Cetol
Cabot Australian Timber Oil
You want to apply a thin coating after using acetone, and at least once a year. You want a wipe on finish (I didn't look at the specific application directions for the ones I listed, but I have used the Waterlox product on my canoe rails, and it works well). 
If you decide on making furniture, I suggest looking up a technique called draw boring. It's a mortise and tenon technique that in theory can make a glueless piece of furniture. I've thought Ipe would make a great Arts and Crafts chair done this way. I still suggest using glue as well, but if the oils ever do get to the glue, the joint being mechanically secure won't fail.
Anyway, if you want to know anything else let me know.