OpenAI is reportedly working with Apple supplier Luxshare-Tech to create a new consumer hardware device that is compact, context-aware, and designed to integrate directly with its advanced AI models, according to The Information. The project, still in its prototype phase, is expected to deliver a fresh alternative to traditional consumer hardware and could eventually challenge the central role of smartphones in daily life.
This initiative comes on the heels of OpenAI’s $6.5 billion acquisition of io Products, a hardware startup founded by renowned former Apple designer Jony Ive. The move underscores the company’s ambition to extend beyond its core strength in AI software and make a mark in consumer electronics. Luxshare-Tech, known for assembling Apple’s iPhones and AirPods, is positioned to provide large-scale manufacturing capabilities for the new device. To complement this, OpenAI has also reached out to China-based Goertek for essential hardware components, including speaker modules.
Industry analysts view this undertaking as one of the most ambitious attempts by an AI company to enter the consumer hardware space. Building an AI-native device from the ground up represents a significant departure from simply embedding AI features into existing products. If successful, the device could fundamentally reshape how users engage with AI on a daily basis and accelerate the transition toward a technology ecosystem that goes beyond smartphones and PCs.
Reports suggest that the device may be unveiled as early as 2027. If realized, it would not only mark OpenAI’s formal entry into consumer electronics but also intensify competition in a sector currently dominated by Apple, Samsung Electronics, and Alphabet Inc. According to Reuters, experts believe that such a bold strategy could open up new revenue streams for OpenAI, positioning it as a formidable player in the global consumer technology market.
Described by analysts as one of the most ambitious efforts by an AI company, the project aims to build an AI-native device from scratch. Its launch would represent a turning point in how consumers experience artificial intelligence—not just as a tool embedded in apps, but as a dedicated device designed entirely around it.
