OpenAI is making a major pivot from software to physical consumer electronics. According to The Information, the AI pioneer has assembled a massive internal team of over 200 employees to develop a suite of AI-integrated devices. The project, which currently includes a smart speaker, smart glasses, and a smart lamp, represents the first tangible fruit of OpenAI’s high-profile collaboration with legendary former Apple designer Jony Ive.
Read: Meta is reportedly launching a smartwatch in 2026
The flagship product of this lineup is a smart speaker slated for an early 2027 release, with a target price between $200 and $300. Unlike current market leaders, this device will reportedly feature an integrated camera designed to provide the AI with visual context.
This “multimodal” approach allows the speaker to identify objects on a nearby table or perceive the nuances of a room’s environment to better assist users. The camera will also serve a security function, utilizing facial recognition technology—comparable to Apple’s Face ID—to authenticate voice-driven purchases and personalize user profiles.
The aesthetic and functional direction of these devices is being spearheaded by Jony Ive, the design visionary behind the iMac, iPhone, and iPad. Last year, OpenAI acquired Ive’s AI-focused design startup, io Products, for $6.5 billion. This acquisition effectively installed Ive as the lead for OpenAI’s hardware division, merging his “minimalist-chic” design philosophy with OpenAI’s cutting-edge models.
While a smart lamp has been prototyped under this new leadership, its commercial future remains uncertain. Meanwhile, the team’s ambitious AI-powered smart glasses—a direct challenge to the Meta Ray-Bans—are reportedly not expected to debut until at least 2028.
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The road to a “mass-produced AI device” hasn’t been smooth. The project has already faced several internal delays due to:
- Computing Power: The logistical challenge of running high-intensity AI models locally on consumer-grade hardware without draining battery or overheating.
- Privacy Paradox: Creating a device that is “always watching and listening” to gain context inherently clashes with growing consumer data-privacy concerns.
- Regulatory Scrutiny: Integrating facial recognition for financial transactions adds a layer of legal complexity that OpenAI must navigate before a global launch.
Ultimately, the success of OpenAI’s hardware will depend on whether Jony Ive’s design can make an intrusive “always-on” camera feel like a seamless, trustworthy utility rather than a surveillance tool.
