Sam Altman, CEO of OpenAI, at the Allen and Co. Sun Valley Media and Technology Conference in Sun Valley, Idaho, U.S., on July 8, 2025.
OpenAI CEO Sam Altman revealed on Friday that the AI powerhouse has completed initial prototypes for its foray into hardware devices, signaling a potential disruption in the consumer electronics landscape.
“Finally, we have the first prototypes,” Altman stated during a discussion with Jony Ive, former Apple design chief, and Laurene Powell Jobs of Emerson Collective. “I can’t believe how jaw-dropping good the work is and how exciting it is.”
The revelation follows OpenAI’s acquisition of Ive’s design firm, io, earlier this year in a deal valued at $6.4 billion in equity, solidifying the company’s ambitions to create groundbreaking AI-powered devices. Ive is reportedly spearheading the design efforts on this confidential project.
While remaining tight-lipped about the specifics, Ive suggested a potential unveiling of the device within the next two years, acknowledging the inherent unpredictability of hardware development, especially within established organizations. He added, “Especially in large companies that value predictability, leaders get really uncomfortable with ambiguity.”
Altman hinted at a departure from the current smartphone experience, envisioning a device that promotes a sense of calm and focus. He contrasted the potential user experience with the sensory overload of “walking through Times Square,” proposing a device that evokes “sitting in the most beautiful cabin by a lake and in the mountains and sort of just enjoying the peace and calm.” This signals a possible shift toward ambient computing, where AI seamlessly integrates into the user’s environment without demanding constant attention.
Expanding on the device’s capabilities, Altman suggested that it will proactively manage information flow, filtering out distractions and prioritizing crucial notifications. Furthermore, the device will possess a comprehensive understanding of the user’s thoughts, reading habits, and past conversations, raising both exciting opportunities and significant privacy considerations. The potential for personalized experiences is immense, but the ethical implications of a device possessing such intimate knowledge are equally substantial.
OpenAI’s foray into hardware has garnered intense attention from industry giants and startups alike. While companies like Amazon, Google, and Meta have released AI-enabled devices such as smart glasses and speakers, none have achieved widespread adoption or fundamentally altered the market dynamics. Startups are also exploring alternative form factors and innovative features, including AI-powered pendants and personalized AI assistants.
The launch of a device from OpenAI, the company behind the widely popular ChatGPT, could potentially break this pattern and pose a long-term challenge to Apple’s dominance in the consumer electronics sector. Apple, which has faced delays in its Siri AI improvements, is under pressure to deliver a compelling AI strategy. The company’s dependence on its existing ecosystem could be a vulnerability if OpenAI successfully introduces a truly disruptive AI-centric device.
Adding to the intrigue, OpenAI recently announced a collaboration with Foxconn, a major manufacturer of consumer electronics, primarily focused on infrastructure development for AI. While the partnership is currently geared towards building AI infrastructure, the potential for future collaboration in device manufacturing remains a possibility. This move underscores OpenAI’s commitment to building a robust and scalable AI ecosystem, capable of supporting both software and hardware innovations.
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