OpenAI is reportedly working on a new type of consumer hardware that departs from the traditional path of wearables and visual interfaces.
Highlights
According to The Wall Street Journal, CEO Sam Altman informed employees that the company’s upcoming product is not a wearable device, but rather a compact, screenless AI companion.
Designed to be either pocketable or desk-friendly, this device is being positioned as a potential “third core device,” complementing products like the MacBook Pro and iPhone.
A Different Take on AI Hardware
Instead of focusing on screens and visual UI, the device is expected to prioritize ambient intelligence—responding to voice, understanding its environment, and blending into users’ daily routines.
OpenAI envisions it as an AI companion capable of contextual interactions, using audio cues and environmental data to assist users without relying on a display.
This move marks a departure from the growing market of smartwatches, AR glasses, and handheld AI devices. It suggests OpenAI’s intention to establish a new category—an always-available AI tool that doesn’t demand constant screen time or visual engagement.
Collaboration With Jony Ive and the io Acquisition
The development of this AI companion is closely tied to OpenAI’s recent $6.5 billion equity acquisition of io, a startup co-founded by former Apple design chief Jony Ive.
Ive is expected to play a pivotal role in shaping the physical and conceptual design of OpenAI’s hardware efforts.
The io team, consisting of 55 engineers and researchers, will integrate into OpenAI, while Ive’s independent design firm LoveFrom will retain creative independence and take a stake in OpenAI.
The partnership has attracted attention, with some observers comparing it to early Apple-era collaborations that produced category-defining products. However, expectations remain tempered until more details are officially released.
A Vision Beyond Screens
At the heart of the device’s concept is a move away from screen-based interaction. Instead, it aims to function through voice, contextual awareness, and natural language processing, effectively acting as a discreet, real-time assistant.
The design philosophy echoes broader trends in ambient computing, where devices operate in the background to provide support without becoming central to the user’s attention.
This “external brain” concept could help users complete everyday tasks more efficiently, and potentially reduce digital overload caused by constant screen interaction.
Market Strategy and Competitive Landscape
By not entering the saturated wearables market, OpenAI appears to be targeting an unoccupied niche in the personal tech space.
The introduction of a screenless AI device could place the company in direct competition with emerging players like Humane and Rabbit AI, who have already introduced AI-first alternatives to smartphones.
OpenAI’s combination of advanced language models, substantial capital, and now world-class design leadership could provide it with a strategic advantage in defining this new category.
CEO Sam Altman reportedly suggested that, if successful, the device could contribute up to $1 trillion in added market value for OpenAI. While projections of that scale remain speculative, they reflect the company’s broader ambition to establish a significant consumer foothold.
Balancing Secrecy and Hype
Despite efforts to maintain confidentiality, the very remarks Altman made to emphasize secrecy were leaked, highlighting potential internal tensions.
He had warned employees that premature disclosures could risk competitors replicating the idea before it launches—a concern not uncommon in highly competitive, emerging tech sectors.
The leak, however, has now shifted some focus to how OpenAI manages its internal operations as it transitions further into hardware development.
Practical Challenges
Success will ultimately depend on user adoption and the ability of the device to deliver consistent, intuitive assistance in everyday scenarios.
Shifting consumer behavior away from screen-centric interaction poses a challenge, as does ensuring data privacy, real-time performance, and seamless integration across environments.
The long-term viability of the AI companion will likely hinge on how naturally it can embed itself into users’ lives, without creating friction or compromising trust.
