OpenAI and Jony Ive's Secretive AI Device: Challenges and Aspirations

OpenAI, Jony Ive struggle with technical details on secretive new AI gadget

OpenAI and star designer Jony Ive are grappling with a series of technical issues with their secretive new artificial intelligence device, as they push to launch a blockbuster tech product next year. The San Francisco-based startup run by Sam Altman acquired the former Apple design chief's company io for $6.5 billion in May, but the pair have shared few details on the projects they are building. Their aim is to create a palm-sized device without a screen that can take audio and visual cues from the physical environment and respond to users' requests. People familiar with their plans said OpenAI and Ive had yet to solve critical problems that could delay the device's release. Despite having hardware developed by Ive and his team -- whose alluring designs of the iMac, iPod, and iPhone helped turn Apple into one of the most valuable companies in the world -- obstacles remain in the device's software and the infrastructure needed to power it. These include deciding on the assistant's "personality," privacy issues, and budgeting for the computing power needed to run OpenAI's models on a mass consumer device. "Compute is another huge factor for the delay," said one person close to Ive. "Amazon has the compute for an Alexa, so does Google [for its Home device], but OpenAI is struggling to get enough compute for ChatGPT, let alone an AI device -- they need to fix that first." A person close to OpenAI said the teething troubles were simply normal parts of the product development process. Multiple people familiar with the plans said OpenAI and Ive were working on a device roughly the size of a smartphone that users would communicate with through a camera, microphone and speaker. One person suggested it might have multiple cameras. The gadget is designed to sit on a desk or table but can also be carried around by the user. The Wall Street Journal previously reported some of the specifications around the device. One person said the device would be "always on" rather than triggered by a word or prompt. The device's sensors would gather data throughout the day that would help to build its virtual assistant's "memory." OpenAI overtook Elon Musk's SpaceX to become the world's most valuable private company this week, after a deal that valued it at $500 billion. One of the ways the ChatGPT maker is seeking to justify the price tag is a push into hardware. The goal is to improve the "smart speakers" of the past decade, such as Amazon's Echo speaker and its Alexa digital assistant, which are generally used for a limited set of functions such as listening to music and setting kitchen timers. OpenAI and Ive are seeking to build a more powerful and useful machine. But two people familiar with the project said that settling on the device's "voice" and its mannerisms were a challenge. One issue is ensuring the device only chimes in when useful, preventing it from talking too much or not knowing when to finish the conversation -- an ongoing issue with ChatGPT. "The concept is that you should have a friend who's a computer who isn't your weird AI girlfriend... like [Apple's digital voice assistant] Siri but better," said one person who was briefed on the plans. OpenAI was looking for "ways for it to be accessible but not intrusive." "Model personality is a hard thing to balance," said another person close to the project. "It can't be too sycophantic, not too direct, helpful, but doesn't keep talking in a feedback loop." OpenAI's device will be entering a difficult market. Friend, an AI companion worn as a pendant around your neck, has been criticized for being "creepy" and having a "snarky" personality. An AI pin made by Humane, a company that Altman personally invested in, has been scrapped. Still, OpenAI has been on a hiring spree to build its hardware business. Its acquisition of io brought in more than 20 former Apple hardware employees poached by Ive from his alma mater. It has also recruited at least a dozen other Apple device experts this year, according to LinkedIn accounts. It has similarly poached members of Meta's staff working on the Big Tech group's Quest headset and smart glasses. OpenAI is also working with Chinese contract manufacturers, including Luxshare, to create its first device, according to two people familiar with the development that was first reported by The Information. The people added that the device might be assembled outside of China. OpenAI and LoveFrom, Ive's design group, declined to comment.

Jony Ive Says He Wants His OpenAI Devices to 'Make Us Happy'

At OpenAI's developer conference in San Francisco on Monday, CEO Sam Altman and ex-Apple designer Jony Ive spoke in vague terms about the "family of devices" the pair are currently working to develop. "As great as phones and computers are, there's something new to do," Altman said on stage with Ive. The duo confirmed that OpenAI is working on more than one hardware product but finer details, ranging from use cases to to specifications, remain under wraps. "Hardware is hard. Figuring out new computing form factors is hard," said Altman in a media briefing earlier in the day. "I think we have a chance to do something amazing, but it will take a while." Ive said that his team has generated "15 to 20 really compelling product" ideas on the journey to find the right kind of hardware to focus the company's efforts on. "I don't think we have an easy relationship with our technology at the moment," said Ive. "Rather than seeing AI as an extension of those challenges, I see it very differently." Ive explained that one reason he wanted to design an AI-powered device with OpenAI is to transform the relationship people currently have to the devices they use every day. While Ive acknowledged the potential for AI to boost productivity, efficiency doesn't appear to be his core goal with these devices. Rather, he hopes for them to bring more social good into the world. The devices should "make us happy, and fulfilled, and more peaceful, and less anxious, and less disconnected," he said. Earlier reporting indicated that OpenAI is planning to manufacture a new category of hardware that doesn't resemble a phone or laptop. In a recent preview for OpenAI staff, Altman hinted that the product would be aware of a user's surroundings and day-to-day experiences, according to The Wall Street Journal. The device might be screenless and rely on inputs from cameras and microphones. OpenAI also hasn't said publicly when it plans to launch the devices, though late 2026 may reportedly be the target launch, according to the Financial Times. The publication recently reported that development of the device has been stymied by technical issues.

iPhone Designer Jony Ive Is Reportedly Running Into Snags With AI Project

Imad is a senior reporter covering Google and internet culture. Hailing from Texas, Imad started his journalism career in 2013 and has amassed bylines with The New York Times, The Washington Post, ESPN, Tom's Guide and Wired, among others. Jony Ive, designer of the iPhone and iPod, is currently working on a new product with OpenAI but is running into technical challenges, according to a report from the Financial Times on Sunday. (Disclosure: Ziff Davis, CNET's parent company, in April filed a lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.) According to the FT report, the product is a screenless palm-sized device that takes in audio and visual information and can respond to user requests. There are challenges, however. Because OpenAI doesn't have the size or scale of Amazon or Google, it can barely handle the computing resources necessary for ChatGPT users, per the report. Adding another layer of customers using a bespoke AI device would require a lot more processing power. This could be why OpenAI entered a multibillion-dollar data center partnership with AMD on Monday. OpenAI CEO Sam Altman posted on X praising the deal and saying, "The world needs much more compute." Don't miss any of our unbiased tech content and lab-based reviews. Add CNET as a preferred Google source. Tuning the device to be useful but not intrusive has also been challenging. The device has trouble knowing when to finish a conversation, a similarly known issue with ChatGPT. The team is trying to ensure the device isn't sycophantic, or too eager to agree with everything the user says. A representative for OpenAI didn't immediately respond to a request for comment. As AI chatbots remain popular, companies have emerged aimed at bringing the AI experience out of the phone or desktop environment and into the real world. Last year, both the Rabbit R1 and Humane AI Pin aimed to be multimodal AI devices separate from your smartphone, taking in surrounding information and being controlled mostly by the user's voice. Both devices failed to impress, although the Rabbit R1 did receive a major update last month. Meta has invested heavily in AI-powered wearables with its Ray-Ban and Ray-Ban Display glasses. That device seems to resonate with consumers as sales for the Meta Ray-Ban tripled this past year. According to a report from Grand View Research, the wearable AI market is expected to grow to be worth $165 billion by 2030.

Sam Altman and Jony Ive's secret device won't be 'your weird AI girlfriend'

OpenAI and designer Jony Ive are trying to solve a number of technical challenges before releasing their mysterious AI gadget, according to a Financial Times report. Two of the challenges include figuring out the palm-sized device's "personality" and how often it should talk. "The concept is that you should have a friend who's a computer who isn't your weird AI girlfriend," according to one source briefed on the plans. The report describes the device as lacking a screen and being "roughly the size of a smartphone" that can be either carried around by the user or placed on surfaces like a table or desk, mirroring similar details that leaked in May. It's designed to communicate with users through a microphone, speaker, and camera -- or multiple cameras, according to one FT source. This is the first of a family of devices being developed by Ive and OpenAI CEO Sam Altman, targeted for release sometime in late 2026 or early 2027. OpenAI is looking for ways to make the gadget "accessible but not intrusive," according to the FT's sources, with the aim of providing a similar experience to Apple's digital voice assistant Siri, "but better." The company is struggling to decide on the voice and mannerisms for the AI-powered device, and ensure that it knows when to engage with users and finish a conversation. One source in the report said OpenAI is taking an "always on" approach that gathers data throughout the day, rather than being activated by specific verbal prompts like Amazon's Alexa-powered Echo devices. Privacy issues around the always-listening device and budgeting constraints for computing infrastructure must also be overcome, according to the report. "Amazon has the compute for an Alexa, so does Google [for its Home device], but OpenAI is struggling to get enough compute for ChatGPT, let alone an AI device," a source close to Ive told the FT. "They need to fix that first."

Jony Ive: Sorry You're All Addicted to Your Phones. My AI Device Will Be Different

When he's not battling bugs and robots in Helldivers 2, Michael is reporting on AI, satellites, cybersecurity, PCs, and tech policy. Don't miss out on our latest stories. Add PCMag as a preferred source on Google. Former Apple designer Jony Ive isn't lifting the curtain on his OpenAI project just yet, but he hopes it'll ease the mental and emotional toll of our tech-obsessed lives. "I don't think we have an easy relationship with our technology at the moment," Ive told an audience at OpenAI's developer conference on Monday. "And rather than see AI as an extension of those challenges, I see it as a chance to use this most remarkable capability to full-on address a lot of the overwhelm and despair that people feel right now," he added. "And some of that is connected to the tools that they are using." In May, OpenAI acquired Ive's "io" startup, which he created last year to develop AI hardware. Officially, the company has only said the project involves a "family of devices," but a recent report from The Financial Times says one of the products will be a handheld device without a screen, capable of taking audio and visual data through a microphone and camera. The big question is how the mysterious project will stand out from today's smartphones, smart speakers, and other (failed) attempts to feature AI. During his talk, Ive signaled that OpenAI's technology can take computing in a new direction without creating a mental toll. "When I say we have an uncomfortable relationship with our technology, I mean that's the most obscene understatement," he said. Although Ive didn't specifically spell out his concerns, his comments might allude to the toxicity of social media and addictiveness of today's devices. Ive hinted that his device will focus on trying to make consumers happy, rather than merely elevating user productivity. "I am a little crushed by how all serious we all take ourselves," he said. "I mean, this is serious stuff. Truly, the ramifications of not caring [about technology's impact], not being careful, are truly horrendous," he added. "But in terms of the devices that we design, in terms of the interfaces that we design, if we can't smile, honestly, if it's just another deeply serious, exclusive thing, I think that would do us all a huge disservice." Ive also noted that one of his goals is to create a device "that should just work. It should seem inevitable; it should seem obvious." His hope is that during this new wave of AI advancement, the next-generation tools "will make us happy, and fulfilled and more peaceful, and less anxious and less disconnected." "Every bone in my body believes this: We have a chance to not just sort of redress them, but absolutely change the situation that we find ourselves in. That we don't accept that this has to be the norm," he said. Disclosure: Ziff Davis, PCMag's parent company, filed a lawsuit against OpenAI in April 2025, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.

OpenAI and Jony Ive grapple with technical issues on secretive AI device

OpenAI and star designer Jony Ive are grappling with a series of technical issues with their secretive new artificial intelligence device, as they push to launch a blockbuster tech product next year. The San Francisco-based start-up run by Sam Altman acquired the former Apple design chief's company io for $6.5bn in May, but the pair have shared few details on the projects they are building. Their aim is to create a palm-sized device without a screen that can take audio and visual cues from the physical environment and respond to users' requests. People familiar with their plans said OpenAI and Ive had yet to solve critical problems that could delay the device's release. Despite having hardware developed by Ive and his team -- whose alluring designs of the iMac, iPod and iPhone helped turn Apple into one of the most valuable companies in the world -- obstacles remain in the device's software and the infrastructure needed to power it. These include deciding on the assistant's "personality", privacy issues and budgeting for the computing power needed to run OpenAI's models on a mass consumer device. "Compute is another huge factor for the delay," said one person close to Ive. "Amazon has the compute for an Alexa, so does Google [for its Home device], but OpenAI is struggling to get enough compute for ChatGPT, let alone an AI device -- they need to fix that first." A person close to OpenAI said the teething troubles were simply normal parts of the product development process. Multiple people familiar with the plans said OpenAI and Ive were working on a device roughly the size of a smartphone that users would communicate with through a camera, microphone and speaker. One person suggested it might have multiple cameras. The gadget is designed to sit on a desk or table but can also be carried around by the user. The Wall Street Journal previously reported some of the specifications around the device. One person said the device would be "always on" rather than triggered by a word or prompt. The device's sensors would gather data throughout the day that would help to build its virtual assistant's "memory". OpenAI overtook Elon Musk's SpaceX to become the world's most valuable private company this week, after a deal that valued it at $500bn. One of the ways the ChatGPT maker is seeking to justify the price tag is a push into hardware. The goal is to improve the "smart speakers" of the past decade, such as Amazon's Echo speaker and its Alexa digital assistant, which are generally used for a limited set of functions such as listening to music and setting kitchen timers. OpenAI and Ive are seeking to build a more powerful and useful machine. But two people familiar with the project said that settling on the device's "voice" and its mannerisms were a challenge. One issue is ensuring the device only chimes in when useful, preventing it from talking too much or not knowing when to finish the conversation -- an ongoing issue with ChatGPT. "The concept is that you should have a friend who's a computer who isn't your weird AI girlfriend . . . like [Apple's digital voice assistant] Siri but better," said one person who was briefed on the plans. OpenAI was looking for "ways for it to be accessible but not intrusive". "Model personality is a hard thing to balance," said another person close to the project. "It can't be too sycophantic, not too direct, helpful, but doesn't keep talking in a feedback loop." OpenAI's device will be entering a difficult market. Friend, an AI companion worn as a pendant around your neck, has been criticised for being "creepy" and having a "snarky" personality. An AI pin made by Humane, a company that Altman personally invested in, has been scrapped. Still, OpenAI has been on a hiring spree to build its hardware business. Its acquisition of io brought in more than 20 former Apple hardware employees poached by Ive from his alma mater. It has also recruited at least a dozen other Apple device experts this year, according to LinkedIn accounts. It has similarly poached members of Meta's staff working on the Big Tech group's Quest headset and smart glasses. OpenAI is also working with Chinese contract manufacturers, including Luxshare, to create its first device, according to two people familiar with the development that was first reported by The Information. The people added that the device might be assembled outside of China. OpenAI and LoveFrom, Ive's design group, declined to comment.

Report: OpenAI's First Device Won't Feature a Screen, Working on Tech Issues

With over a decade of experience reporting on consumer technology, James covers mobile phones, apps, operating systems, wearables, AI, and more. Don't miss out on our latest stories. Add PCMag as a preferred source on Google. Earlier this year, ChatGPT-maker OpenAI and former Apple designer Jony Ive's latest company announced a partnership that would see the two work together on an AI-focused hardware project. Now, a new report suggests the project may have hit technical challenges around that first device. OpenAI CEO, Sam Altman, has previously called this the first of "a family of devices." A report from the Financial Times, speaking with anonymous sources familiar with OpenAI's plans, says the first-gen device will be a similar size to a smartphone, but it won't feature a screen. It's expected to be able to take both audio and visual information from its environment. That would be possible through a camera and microphone built into the device, with some sources claiming there may be more than one camera. It's likely to be a device you carry and place nearby, rather than a wearable item. That may mean it will differ from devices like the Plaud Note AI pin designed to be worn on your clothes and listen to your everyday conversations. These sources say the brand intends to have its AI always on, so you won't turn it on with your voice or a button. However, the project is reportedly struggling to figure out how to teach its AI to know when it should interact with a conversation. One source said OpenAI was also focusing work on its "personality" for the device. A source said, "The concept is that you should have a friend who's a computer who isn't your weird AI girlfriend." Elsewhere in the report, sources say all of these problems are a normal part of the development process. It's rumored the project is targeting a late 2026 or an early 2027 release date. So far, the brand has kept its project's details secret as it fears competitors may copy its plans. The Wall Street Journal reported in May that Altman told the company's employees they had "the chance to do the biggest thing we've ever done as a company." Disclosure: Ziff Davis, PCMag's parent company, filed a lawsuit against OpenAI in April 2025, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.

OpenAI's first device with Jony Ive could be delayed due to 'technical issues'

OpenAI and Jony Ive could still have some serious loose ends to tie up before releasing their highly anticipated AI device. According to a Financial Times report, the partnership is still struggling with some "technical issues" that could ultimately end up pushing back the device's release date, which is expected to be sometime in 2026. One of those lingering dilemmas involves figuring out the AI assistant's voice and mannerisms, according to FT's sources. The AI device is meant to be "a friend who's a computer who isn't your weird AI girlfriend," according to a FT source who was briefed on the plans. Beyond landing on a personality, OpenAI and Ive are still figuring out potential privacy concerns stemming from a device that's always listening. On top of that, the budget could reportedly be a challenge due to the increased computing power necessary to run these mass-produced AI devices. Outside these latest struggles, we still know very little about the upcoming product. Sam Altman, OpenAI's CEO, reportedly offered some clues to employees that it could be pocket-sized, aware of its environment and sans display. There are still plenty of questions about what OpenAI's first hardware project will amount to, but the company could be exercising more caution since similar devices, like the Humane AI Pin, were discontinued after failing to deliver on sales.

OpenAI and Jony Ive are struggling to bring their AI device to life

Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. Rumor mill: OpenAI's ambitious foray into consumer hardware is facing mounting technical challenges, as the artificial intelligence company and renowned designer Jony Ive struggle to refine a next-generation AI device they hope to launch next year. The product is being developed under Ive's London-based firm LoveFrom, which OpenAI acquired in May for $6.5 billion. People familiar with the project told The Financial Times that the device - a compact, screenless gadget capable of interpreting its surroundings through cameras and microphones - is still wrestling with core issues in both hardware and software. Executives have kept most details under wraps, but several people close to the effort said the company aims to build something far more advanced than existing digital assistants such as Amazon's Alexa or Apple's Siri. Rather than relying on a phone or display, the device is designed to sense and respond to the physical world through visual and auditory cues. Prototypes are roughly the size of a smartphone and expected to feature multiple cameras, a microphone array, and speakers allowing two-way conversation. Sources said the concept envisions an "always-on" assistant, capable of observing and remembering contextual information throughout the day to improve how it interacts with users. "The concept is that you should have a friend who's a computer - not your weird AI girlfriend," said one person familiar with the design philosophy. The challenge, they added, lies in ensuring the device communicates naturally, without being intrusive or overbearing. That social balancing act remains one of the biggest technical hurdles. Engineers are still determining what tone and "personality" the assistant should project - direct yet not abrasive, helpful but not excessively talkative. "Model personality is a hard thing to balance," another person close to the project said. "It can't be too sycophantic, not too direct, helpful, but doesn't keep talking in a feedback loop." OpenAI's biggest constraint may not be design but compute: the vast processing power needed to operate its large language models at scale. The same infrastructure that runs ChatGPT must support a real-time AI companion device. "Amazon has the compute for an Alexa, so does Google for its Home device, but OpenAI is struggling to get enough compute for ChatGPT, let alone an AI device - they need to fix that first," a source said. Unlike cloud-only AI services, a consumer product must process vast amounts of data on demand while preserving user privacy and responsiveness. Sources said the company has not decided how much of that processing will occur locally on the device versus remotely on OpenAI's servers. To build the device, OpenAI has quietly assembled an experienced hardware operation. The $6.5 billion acquisition of Ive's design firm brought in more than 20 former Apple engineers who had previously worked on major hardware products including the iMac, iPhone, and iPod. The company has since added at least a dozen more Apple veterans this year, as well as engineers from Meta who worked on the Quest headset and Meta's smart glasses. Two people familiar with OpenAI's supply chain said the firm has been in discussions with Chinese contract manufacturer Luxshare to produce the device, though final assembly could take place outside China. The pivot toward hardware arrives as OpenAI becomes the world's most valuable private company, recently overtaking SpaceX with a valuation of about $500 billion. Developing a physical product is seen by those inside the company as a way to extend its AI beyond chat interfaces and into continuous daily use. But entering the consumer market carries risks. Similar devices from other start-ups have struggled to find traction. A wearable AI companion called Friend drew criticism for its intrusive design and erratic personality, while Humane - a company personally backed by OpenAI chief executive Sam Altman - was forced to scrap its AI Pin after disappointing sales and software problems. Some within OpenAI view these failures as cautionary tales. One person close to the effort said the company wants its device to be "accessible but not intrusive," offering assistance that feels less like a novelty and more like a useful extension of OpenAI's technology. For Ive, whose minimalist hardware aesthetic helped shape modern consumer electronics, the project represents his first major collaboration since departing Apple in 2019. Yet the partnership with OpenAI is not without strain. People briefed on the process described unresolved debates over the assistant's design language, privacy safeguards, and the mounting cost of running AI models across millions of personal devices.

Looks Like Sam Altman and Jony Ive Are Struggling to Make an AI Device That Does... Anything

Killing the smartphone ain't easy business; just ask Sam Altman and Jony Ive. In May, the OpenAI CEO and former Apple chief designer announced that they would be making a real, tangible gadget you can eventually hold with your (presumably) real, non-chatbot handsâ€"and not just any gadget. As part of a new company called IO, the two are making an AI gadget. The gadget, in the duo's estimation, is a move beyond screens and a revolutionary "third core" device. It's also, according to a new report, not going so well. Per the Financial Times, the two tech heavyweights are working on "a palm-sized device without a screen that can take audio and visual cues from the physical environment and respond to users’ requests." It also is "designed to sit on a desk or table," though it's also portable. They also have "yet to solve critical problems that could delay the device’s release." What are those critical problems, you ask? Well, ya know, just basic stuff like getting the device to listen and also actually getting the compute power to make the device... work. Citing an anonymous person familiar with the goings-on in IO: “Amazon has the compute for an Alexa, so does Google [for its Home device], but OpenAI is struggling to get enough compute for ChatGPT, let alone an AI deviceâ€"they need to fix that first.†I'm no AI genius, but methinks actually having a computer inside the computer would be a good start. I write "a good start" here, because apparently, even if this thing does have a brain, its "personality" has not been particularly conducive to killing your smartphone. In that apparent "personality" issue are actually multiple issues, so let's start from the top; according to the Financial Times, IO's device has a camera and microphones and is always listening. It's alsoâ€"if that wasn't setting off enough alarmsâ€"pocketable and able to be carried with you everywhere you go, and, I would assume, recording everyone/everything you meet. That is quite obviously a privacy nightmare, especially so considering OpenAI's general stewardship of users' digital information. Beyond that, it's also an enormous challenge from a design standpoint., IO's device is designed to listen in all the time and respond when appropriate, but the company is struggling with coding the device in such a way that it responds when you want it to and shuts up when you don't. And you thought Google Home was bad. So, to recap: Altman and Ive are struggling to power the device, make it useful, and are (by design) barreling towards another potential privacy landmine. You got all that? Oh, and to make matters even more fraught, the state of AI gadgets is arguably more disheveled than it's ever been. Humane, the company that made that buggy, overpriced Ai Pin that didn't do half of what the company promised, has been stripped for parts and sold to HP of all companies, so that's one big name down. Humane's step brother, Rabbit, ain't doing much better. The company recently revealed rabbitOS 2, which leans very hard into the idea of vibe coding your own apps and finally simplifies the R1's UI to make it more touch-based like a smartphone. Whether any of that matters is another question. It's been almost 1.5 years since the R1 was released, and it's been crawling on life support since its very slow start. Obviously, neither of those companies is as well-resourced and splashy as IO, but I'm not sure that the problem, at this point, is really one of resources. When it comes to AI gadgets, there is still a lot to be figured out, like: how do we make them work? Do people even want this? And should we really be walking around recording everything we do and say all the time in perpetuity? And yeah, money (engineering and R&D) may solve some of that, but it can't buy a market for something people just don't want. As is the way of Silicon Valley, it looks like Altman and Ive might be figuring that out in the most expensive way possible.

Jony Ive's secretive AI hardware reportedly hit three problems

The secretive AI hardware device designed by former Apple design chief Jony Ive and set to be launched by ChatGPT maker OpenAI has reportedly been delayed, as the company struggles to solve three fundamental problems. One of the challenges is said to be deciding on a personality for the device, with the team trying to make it like a helpful friend rather than "a weird AI girlfriend" ... Jony Ive and Sam Altman released a video earlier this year which talked about a new AI hardware device without giving any meaningful details about what it was or how it would work. Trying to figure out what form factor it might take has been an entertaining process. The only new-ish AI hardware form factor that has so far made any sense to me is smart glasses, but Altman has specifically said that io is not a pair of glasses, while both have also made it clear that it's not a phone. The pair strongly imply it's a form factor we haven't yet seen, which would seem to rule out a badge, a smartwatch, a smart ring, or in-ear headphones. OpenAI appeared to be trolling us. Asking ChatGPT to imagine the device always produced a very similar looking image of a pebble-shaped device (above) that gave no real clues. The device is scheduled for launch sometime next year, but a Financial Times report suggests that this may be delayed. People familiar with their plans said OpenAI and Ive had yet to solve critical problems that could delay the device's release. One rather basic problem is how to give the device the computing power it will need to be useful. A source close to Ive said that "OpenAI is struggling to get enough compute for ChatGPT, let alone an AI device." Privacy is another big challenge. Unlike smart speakers, which are triggered by a wake word or phrase, the report says that this device is always on. That would mean both cameras and microphones are always active, which obviously poses a huge privacy issue. Finally, the team are said to be struggling with developing a personality for the device. One issue is ensuring the device only chimes in when useful, preventing it from talking too much or not knowing when to finish the conversation -- an ongoing issue with ChatGPT. "The concept is that you should have a friend who's a computer who isn't your weird AI girlfriend," said one source. The company is reportedly working with Chinese contract manufacturers on the hardware, although it has been suggested that the device might be assembled outside of China.

OpenAI's wearable is already facing problems -- and it hasn't even been announced yet

OpenAI has been quietly teasing its first-ever device over the past few months. The wearable device, designed in collaboration with the legendary ex-Apple designer Jony Ive, has been billed as the future of AI. But it seems like the team is running into some problems early in the process. The device they are working on is planned to be screenless and AI-powered. But, according to the Financial Times, the team is already running into some problems in the development process. This includes disagreements on the personality of the AI assistant, privacy issues, and budgeting concerns for the computing power that will be needed to run OpenAI's models on a device like this. "Compute is another huge factor for the delay," said one person close to Ive, according to the Financial Times. "Amazon has the compute for an Alexa, so does Google [for its Home device], but OpenAI is struggling to get enough compute for ChatGPT, let alone an AI device -- they need to fix that first." While OpenAI hasn't given any clues yet as to what the device might look like, multiple people familiar with the plans said the company was working on a device roughly the size of a smartphone. It would communicate via a camera, microphone, and speaker. Similar to devices like the Humane Pin before, this new wearable would be designed to interact with the world around you. According to one person referenced by the Financial Times, it would be an always-on device. It would gather data throughout the day, acting as a very eager assistant. Along with the concerns over computing power, nailing the personality side of the device is proving to be a surprisingly big challenge. OpenAI doesn't want the device to be overly invasive, chiming in all of the time with an overly friendly attitude. But it also wants it to be involved in your decision-making. This is an area that OpenAI has struggled with before. Previous models have been overly sycophantic and too eager to please. There are also concerns about the assistant getting stuck in a feedback loop while dealing with everyday tasks. Surprisingly, this is already quite a crowded market. While there are already plenty of AI assistants you can install on your computer or smartphone, there are equally plenty of companies developing AI wearable assistants. Plaud, an AI note-taking device, has been growing in popularity, transcribing and making notes from meetings and conversations you have. But it is Friend, an AI companion worn around your neck, that is the closest competitor to OpenAI's new device. Friend drew criticism for being overly invasive, and Humane Pin (mentioned above) had similar goals to OpenAI's wearable, before being reviewed terribly across the board. OpenAI has the finances, the AI technology and the fanbase to potentially pull this off and have the first popular AI wearable. However, it will still prove to be a challenge, both with the problems it is currently facing and with its competitors of the past receiving such poor reviews.

Here's what Jony Ive and Sam Altman revealed about their secretive AI hardware project at OpenAI's Dev Day

In a packed theater at Fort Mason, after a whirlwind keynote of product announcements, OpenAI CEO Sam Altman sat down with Sir Jony Ive, the legendary designer behind Apple's most iconic products. The conversation, held exclusively for the 1,500 developers in attendance and not part of the public livestream, offered the clearest glimpse yet into the philosophy and ambition behind their secretive collaboration to build a new "family" of AI-powered devices. The partnership, solidified by OpenAI's staggering $6.5 billion acquisition of Ive's hardware startup Io in May, has been the subject of intense speculation.While concrete product details remained under wraps, the discussion pivoted away from specifications and toward a profound, almost therapeutic mission: to fix our broken relationship with technology. For nearly 45 minutes, Ive, in his signature thoughtful cadence, articulated a vision that feels like both a continuation of and a repentance for his life's work. The man who designed the iPhone, a device that arguably defined the modern era of personal computing, is now on a quest to cure the very anxieties it helped create. Jony Ive's post-Apple mission, clarified by ChatGPT The collaboration, Ive explained, was years in the making, but it was the launch of ChatGPT that provided a sudden, clarifying purpose for his post-Apple design collective, LoveFrom. "With the launch of ChatGPT, it felt like our purpose for the last six years became clear," Ive said. "We were starting to develop some ideas for an interface based on the capability of the technology these guys were developing... I've never in my career come across anything vaguely like the affordance, like the capability that we're now starting to sense." This capability, he argued, demands a fundamental rethinking of the devices we use, which he described as "legacy products" from a bygone era. The core motivation, he stressed, is not about corporate agendas but about a sense of duty to humanity. "The reason we're doing this is we love our species and we want to be useful," Ive said. "We think that humanity deserves much better than humanity generally is given." An 'obscene understatement': Jony Ive's quest to cure our tech anxiety The most striking theme of the conversation was Ive's candid critique of the current state of technology -- the very ecosystem he was instrumental in building. He described our current dynamic with our devices as deeply flawed, a problem he now sees AI as the solution to, not an extension of. "I don't think we have an easy relationship with our technology at the moment," Ive began, before adding, "When I said we have an uncomfortable relationship with our technology, I mean, that's the most obscene understatement." Instead of chasing productivity, the primary goal for this new family of devices is emotional well-being. It's a radical departure from the efficiency-obsessed ethos that dominates Silicon Valley. When asked about his ambitions for the new devices, Ive prioritized emotional well-being over simple productivity. "I know I should care about productivity, and I do," he said, but his ultimate goal is that the tools "make us happy and fulfilled, and more peaceful and less anxious, and less disconnected." He framed it as a chance to reject the current, fraught relationship people have with their technology. "We have a chance to... absolutely change the situation that we find ourselves in," he stated. "We don't accept this has to be the norm." Buried in brilliance: why '15 to 20 compelling ideas' have become Ive's biggest challenge While the vision is clear, the path is fraught with challenges. Reports have surfaced about technical hurdles and philosophical debates delaying the project. Ive himself gave voice to this struggle, admitting the sheer pace of AI's progress has been overwhelming. The rapid advancement has generated a torrent of possibilities, making the crucial act of focusing incredibly difficult. "The momentum is so extraordinary... it has led us to generate 15 to 20 really compelling product ideas. And the challenge is trying to focus," Ive confessed."I used to be good at that, and I've lost some confidence, because the choices are, it'll be easy if you really knew there were three good ones... it's just not like that." This admission provides context to reports that the team is grappling with unresolved issues around the device's "personality" and computing infrastructure. The goal, according to one source, is to create an AI companion that is "accessible but not intrusive," avoiding the pitfalls of a "weird AI girlfriend." Beyond the screen: Ive's design philosophy for an 'inevitable' AI device While no devices were shown, the conversation and prior reports offer clues. The project involves a "family of devices," not a single gadget.It will likely be a departure from the screen-centric world we inhabit. Reports suggest a "palm-sized device without a screen" that relies on cameras and microphones to perceive its environment. Ive argued that it would be "absurd" to assume that today's breathtaking AI technology should be delivered through "products that are decades old." The goal is to create something that feels entirely new, yet completely natural. "It should seem inevitable. It should seem obvious, as if there wasn't possibly another rational solution to the problem," Ive said, echoing a design philosophy often attributed to his time with Steve Jobs. He also spoke of bringing a sense of joy and whimsy back to technology, pushing back against a culture he feels has become overly serious. "In terms of the interfaces we design, if we can't smile honestly, if it's just another deeply serious sort of exclusive thing, I think that would do us all a huge disservice," he remarked. The chat concluded without a product reveal, leaving the audience with a philosophical blueprint rather than a technical one. The central narrative is clear: Jony Ive, the designer who put a screen in every pocket, is now betting on a screenless future, powered by OpenAI's formidable intelligence, to make us all a little less anxious and a little more human.

OpenAI, Jony Ive AI hardware faces reported delays

OpenAI's ambitious hardware partnership with former Apple Chief Design Officer Jony Ive has reportedly hit a snag, according to sources cited by the Financial Times. Those familiar with the project told the FT that Ive's startup -- acquired by OpenAI earlier this year -- is facing both software and hardware challenges with the device. The product is envisioned as a palm-sized, screenless gadget capable of interpreting its surroundings through cameras and microphones. The goal is to create a conversational, contextually aware AI assistant similar to Humane's Ai Pin or Friend AI, with a planned release sometime next year. But realizing that vision appears to be proving difficult. The team is reportedly struggling to overcome key development hurdles, which could push the release back to 2027. Among the problems are issues with software architecture, infrastructure, and design integration needed to make the device viable at scale. Privacy concerns are a major challenge, especially if the device is intended to operate as an "always-on" assistant. And then there's cost: scaling the compute power needed for a consumer-level AI device could strain OpenAI's already massive infrastructure budget. A person close to Ive told the FT that OpenAI, compared to competitors like Google and Amazon, is "already struggling to get enough compute for ChatGPT, let alone an AI device." That's hardly shocking, given that keeping ChatGPT online reportedly costs the company between $3 and $4 billion a year. According to the report, the biggest sticking point is the "personality" of the AI itself. OpenAI reportedly wants it to feel like a friendly companion -- without veering into the territory of a "weird AI girlfriend." As FT notes, devices like Friend AI have been criticized for the AI personality being "creepy" and "snarky." Many of OpenAI's ChatGPT models have also been criticized for being overly sycophantic as well. "OpenAI was looking for 'ways for it to be accessible but not intrusive,'" the FT writes.

Legendary Apple designer Jony Ive wants to fix our relationships with the phones he helped created -- and has up to 20 different OpenAI gadgets to do so | Fortune

Former Apple designer Jony Ive, known for helping drive the world's obsession with smartphones and other touch devices, has some thoughts about how to improve our relationship with technology. The 58-year-old designer was instrumental in creating the iPhone, iPod, and iPad, and is now helping OpenAI create AI-first devices after it acquired his AI hardware startup, io, earlier this year for a cool $6.5 billion. But rather than replicate the work that made him famous, Ive said he wants to create devices that spark more joy and less anxiety, Business Insider reported. "When I said we have an uncomfortable relationship with our technology, I mean that's the most obscene understatement," Ive said while being interviewed by OpenAI CEO Sam Altman this week at OpenAI's DevDay conference. Ive said his latest work at OpenAI is a chance to completely change the situation the world finds itself in regarding technology so as to "not accept the norm." Apparently, he and his team have no shortage of ideas to bring this vision to life. "That momentum has led us to create 15 to 20 really compelling product ideas. The challenge is to focus," Ive told Altman at the San Francisco event. "It would be easy if you knew there are three good ones. It's just not like that. We're designing a family of products. And we're trying to make sure we're judicious and thoughtful in what we focus on and to then not be distracted." It's unclear exactly what Ive is building at OpenAI, but Altman in a preview to staff earlier this year teased a "family of devices." The Financial Times reported the secretive device may be palm-sized, without a screen. The device could also be responsive to voice prompts as well as audible and visual cues. Yet, OpenAI still needs to solve critical problems that could delay the device's launch, the FT reported. OpenAI did not immediately respond to Fortune's request for comment. Ive said he hopes the devices he and his team ultimately create address some of the biggest issues caused by smartphones and tablets. Technology has in some cases caused people problems with concentration, patience, and anxiety. Researchers have also correlated "doomscrolling" negative news on social media with worsening mental health. In what could be interpreted as a veiled criticism of his former company, Apple, Ive said OpenAI is going for the opposite of exclusivity. Apple, with its $1,000-plus phones, its "walled garden" of apps and its conspicuous blue iMessage bubbles, has clearly positioned itself for years as the exclusive brand in a world overflowing with technology. "The ramifications and consequences of not caring and not being careful are truly horrendous," Ive said. "In terms of the interfaces we design, if we can't smile honestly, if it's just another deeply serious exclusive thing, I think that would do us all a huge disservice." The new generation of AI-first devices "should seem obvious -- as if there wasn't possibly another rational solution to the problem," he added. Ive has previously talked about how the tech industry has changed since he moved to the Bay Area in 1992. When he arrived, Ive said he felt smart people in Silicon Valley were driven by a mission to serve humanity -- a calling that has been more recently been replaced in some cases by corporate agendas "driven by money and power." Going back to the central idea of technology as a force for good and a tool to help the world is top of mind for Ive, he said during a talk with Stripe CEO Patrick Collison in May. "I think there needs to be foundational values and an understanding of our place in all of this and having a clear sense of the goal, which is to enable and inspire people," he said.

OpenAI's Jony Ive device is already in delay danger

Sam Altman wanted a revolution you could hold in your hand. What he has instead is a problem that keeps overheating. According to new reporting from the Financial Times, OpenAI's top-secret hardware project -- reportedly a palm-sized, screenless personal assistant that is being designed by former Apple design chief Jony Ive -- is mired in technical snags that could delay its launch beyond next year. The device, which has started to sound a lot like an Apple product (made with former Apple employees), would sit on your desk or travel in your pocket, quietly absorbing context and answering questions like a ChatGPT-powered companion. Altman has pitched the device as something closer to a new computing category than a gadget. The goal is reportedly to create an "AI companion" that coexists with users and responds naturally, freeing people from their phones rather than replacing them. OpenAI had reportedly been aiming to ship the first version in 2026, with long-term ambitions to put as many as 100 million of the devices into circulation. To get there, Altman and Ive are betting that a generation trained to distrust social media and crave "less screen time" will welcome a subtler, more ambient form of AI in their lives -- even if it means the AI is literally in the room. But the same qualities that make OpenAI's device sound futuristic also make it nearly impossible to build. People familiar with the project told the FT that OpenAI and Ive's team are still wrestling with fundamental issues around power, privacy, and performance -- starting with how to run enormous AI models on a tiny, battery-driven gadget. The computing problem looms largest. One source familiar with the project told the FT that Amazon and Google have the advantage here, because they currently have the vast cloud capacity to keep their respective Alexa and Nest devices running smoothly. OpenAI, by contrast, is already straining to feed ChatGPT's demand. Adding a consumer device to that load without burning cash or melting chips will require a breakthrough in efficiency -- which doesn't exist yet. Then, there's the question of personality. Engineers are reportedly testing ways to make the assistant sound helpful but not servile, conversational but not clingy -- an algorithmic Goldilocks act that has eluded even the most polished voice platforms. The OpenAI product's "always on" design only heightens the stakes. Privacy advocates have already dubbed the device a potential surveillance cube, and even casual observers have wondered how a microphone that never sleeps will fit into a world already suspicious of data leaks and eavesdropping. OpenAI's $6.5 billion acquisition of Ive's studio, io, was supposed to signal confidence -- proof that the company behind ChatGPT could evolve from code to craftsmanship. The company has also reportedly partnered with Luxshare, one of Apple's key manufacturing contractors, to produce early units -- a nod to just how closely OpenAI's product mirrors Cupertino's playbook. But the sheen of design gloss can't hide the physics underneath. The device's sensors, processors, and compute costs collide with the limits of power, bandwidth, and public trust. And as Humane's AI pin and other "always-on" devices have shown, grand ideas can still flop when the real world refuses to turn them on. This hardware bet is as symbolic as it is strategic for Altman, who just pushed OpenAI's valuation to roughly $500 billion -- a way to turn the abstract magic of software into something you can actually buy. But as delays pile up and costs balloon, the device is sounding less like a category-defining, iPhone moment and more like Apple's Newton era: a neat idea that arrived years too soon.

OpenAI's Huge New Project Is Running Into Trouble Behind the Scenes

Behind the scenes, OpenAI is working on a new AI device in collaboration with the legendary former Apple designer Jony Ive. But according to the Financial Times, it's running into some major technical issues that could delay its release -- along with some more philosophical ones, too. The goal, per the reporting, is to make a palm-sized device without a digital display that constantly monitors its surroundings for audio and visual cues, responding to user requests where appropriate. A source described it as "like Siri, but better." But one of the quandaries that OpenAI and Ives are running into? Not making the AI too personable and sycophantic -- which is telling, since finding that balance is a problem besetting the chatbot industry at large. "The concept is that you should have a friend who's a computer who isn't your weird AI girlfriend," the source told the FT. It should be "accessible but not intrusive." OpenAI acquired Ive's startup io for $6.5 billion in May, but the details of their arrangement has largely been kept under wraps. That month, CEO Sam Altman told his staff that he planned to ship 100 million devices designed with Ives, which he described as AI "companions." This appears to be the same device we're hearing about now. A key part of the design philosophy is featuring zero screens. To compensate, the small device will rely on a camera, microphone, and a speaker to interact with users. It may even use multiple cameras, according to one FT source. Instead of being triggered by a phrase like Apple's "Hey Siri," the device will be "always on," constantly gathering data so it can build its "memory," something that other wearable AI tech has relied on, and will undoubtedly raise massive privacy concerns if it ever hits shelves. But it sounds like OpenAI and Ive want their gadget to be more than just a wearable. It's also being designed to sit on a desk or table, and will be roughly the size of a smartphone. Not only is it supposed to be a better Siri, as a source described, but an improvement on smart speakers like Amazon's Alexa or Google's Home devices. All this is easier said than done. For one, OpenAI already struggles to rein in ChatGPT's engaging disposition without angering its own fans. Now it needs to somehow bridge this gap in a new and lighter-weight model. "Model personality is a hard thing to balance," a source close to the project told the FT. "It can't be too sycophantic, not too direct, helpful, but doesn't keep talking in a feedback loop." And then there's the hardware side of the equation. "Compute is another huge factor for the delay," a source close to Ive told the FT. "Amazon has the compute for an Alexa, so does Google, but OpenAI is struggling to get enough compute for ChatGPT, let alone an AI device -- they need to fix that first." Even if those get ironed out, will there be demand to justify the billions OpenAI has invested to make this collaboration happen? ChatGPT boasts over 700 million weekly active users, the company claims, so technically it isn't unthinkable that OpenAI could ship 100 million little AI gadgets. But as of April, it only had 20 million paying subscribers, which suggests that the vast majority of its userbase aren't willing to shell out money for OpenAI's products. Perhaps a physical device might be more alluring, but it's a big gamble.

Altman and Ive have apparently hit a snag with their mysterious AI device

It was in October 2023 that reports first surfaced of Apple's former design guru, Jony Ive, teaming up with OpenAI chief Sam Altman to create what was dubbed at the time as "the iPhone of artificial intelligence." Earlier this year, OpenAI said it was acquiring io, a startup co-founded by Ive, in a $6.5 billion deal that finally confirmed the existence of the partnership to develop new AI-powered hardware. Recommended Videos In May, Altman said he'd already seen Ive's design for the product, describing it as "the coolest piece of technology that the world will have ever seen." But the device is still hidden away. A target launch date has been set for next year, but a report by the Financial Times (FT) over the weekend suggested that it faces a delay as the team attempts to overcome a number of technical issues. The much-anticipated product will be "a palm-sized device without a screen that can take audio and visual cues from the physical environment and respond to users' requests," according to the FT, which has spoken to people with knowledge of the project. It's also been described by an insider as "roughly the size of a smartphone that users would communicate with through a camera, microphone, and speaker." But the report added that the team is having issues with the device's "software and the infrastructure needed to power it." For example, It's currently trying to agree on the personality of the device's AI assistant, while also addressing privacy issues. A source told the FT that "compute is another huge factor for the delay," referring to the computing power and infrastructure necessary to run the advanced AI models that the device will depend on. "Amazon has the compute for an Alexa, so does Google [for its Home device], but OpenAI is struggling to get enough compute for ChatGPT, let alone an AI device. They need to fix that first." It wouldn't be unusual for an all-new device to face delays, and no doubt Ive and Altman have at the forefront of their minds the disastrous launch suffered by Humane's AI Pin. The AI Pin was a highly anticipated AI-powered wearable device released in April 2024. It was marketed as a revolutionary smartphone replacement but failed spectacularly due to a slew of issues that included poor product design, slow and unreliable AI responses, short battery life, and a high price of $699 plus additional subscription costs. The device was discontinued in February this year and the company sold its key assets to HP for $116 million.

OpenAI and Jony Ive developing new AI device, report details challenges

OpenAI and former Apple designer Jony Ive are developing a new AI hardware device that is facing several technical and design hurdles, according to a report from the Financial Times. The project's development involves addressing complex issues such as the assistant's personality, user privacy, and securing enough computing power for a mass-market product. A significant challenge for OpenAI is securing the computational resources needed to run the device. One source noted that while competitors like Amazon and Google have the compute power for their assistants, OpenAI is already "struggling to get enough compute for ChatGPT, let alone an AI device." The proposed solution is a cloud-powered approach, which could lower hardware costs and offer a more robust experience. However, this method requires reliable connectivity to prevent performance issues. The device's design aims for an assistant that is effective without being overly talkative or unresponsive. The device is described as a palm-sized gadget without a screen, relying instead on a microphone, camera, and speaker. The intended user experience is more sophisticated than current smart speakers, with a design that is versatile enough to be placed on a desk or taken on the go. A key feature is its proposed "always-on" functionality, which would eliminate the need for a wake word. By continuously using its sensors, the assistant could gather contextual information throughout the day to build a better understanding of the user. Creating the right personality for the assistant is another complex task. Sources described the goal as building "a friend who's a computer," aiming for an experience "like Siri but better." This requires finding a balance between being helpful and maintaining appropriate boundaries, avoiding a tone that is either too flattering or too blunt. The device's always-on nature and continuous sensor engagement raise significant privacy concerns. The report notes that questions remain about data collection and the extent of information that would be continuously gathered and processed from users. While the project is an ambitious attempt to create a more intuitive and context-aware personal assistant, these substantial technical and privacy challenges must be addressed before the device can be released.

OpenAI, Jony Ive's Secret AI Device Hit By Software and Infra Issues

Unlike Google and Amazon, OpenAI is new to the AI hardware space OpenAI and former Apple design chief Jony Ive have reportedly been developing a secretive AI device for much of the year. While earlier reports suggested a launch by the end of 2026, the project may now face delays amid mounting technical challenges. As per a report, the teams are grappling with software and infrastructure issues, particularly around building a sustainable compute budget to power OpenAI's AI models at scale, a hurdle that could significantly slow progress on the highly anticipated device. OpenAI's AI Device Reportedly Faces Multiple Issues According to Financial Express, the secretive AI device's hardware development is going smoothly, but the company is struggling with certain software aspects and the infrastructure to power the device. Citing unnamed people familiar with the matter, the report claimed that on the software front, the company is currently deciding on the personality of the assistant. Privacy is said to be another issue. On the infrastructure end, compute budgeting is a major issue the company is trying to solve. It is also said to be the main reason that can push the launch timeline of the device. "Amazon has the compute for an Alexa, so does Google [for its Home device], but OpenAI is struggling to get enough compute for ChatGPT, let alone an AI device; they need to fix that first," the source told Financial Times. Coming to the device itself, the report claims that it is about the size of a smartphone, and users can communicate with it via cameras, microphones, and speakers. The device is said to sport multiple cameras. The palm-sized AI device is reportedly designed to sit on a desk, but can also be carried by the user. It reportedly remains "always on," and there is no need to activate it using a trigger word. Instead, it continuously collects data from its surroundings to help the user with any task throughout the day. The description makes it sound like Humane's AI Pin or the Rabbit R1, but as a desktop device instead of a wearable. As per the report, the device is envisioned as an upgrade over Amazon's Echo devices and Google Nest products, where the in-built assistant can only perform a fixed set of actions. OpenAI and Ive are reportedly building a device that is more powerful and is general-purpose in nature. This is where the software issues are popping up. The teams are reportedly facing challenges in settling on the AI assistant's voice and mannerisms. It is said that while they want it to be suitable for different kinds of tasks, the intention is not to make it sound like "your weird AI girlfriend" like Apple's Siri. Another challenge is to make it helpful but not intrusive, the report added.

Jony Ive And OpenAI's Artificial Intelligence Device Reportedly Faces Delays -- Here Is What's Threatening 2026 Launch For The Palm-Sized Gadget - Microsoft (NASDAQ:MSFT)

OpenAI and legendary designer Jony Ive are reportedly facing major technical challenges as they race to launch their secretive new AI device, casting doubt on plans for a 2026 debut. OpenAI And Jony Ive Struggle To Finalize AI Hardware OpenAI and Ive's design firm, LoveFrom, are working on a palm-sized AI device intended to act as a screenless digital assistant -- one that interprets audio and visual cues from its surroundings and responds naturally to user requests. However, the companies are still grappling with unresolved hardware and software issues, reported the Financial Times, citing people familiar with their plans. This includes design refinements, user experience and the massive computing power required to operate OpenAI's models in real time. "Compute is another huge factor for the delay," one person close to Ive told the publication. "Amazon has the compute for Alexa, so does Google [for its Home device], but OpenAI is struggling to get enough compute for ChatGPT, let alone an AI device -- they need to fix that first." The San Francisco-based AI company, led by CEO Sam Altman, acquired Ive's firm io for $6.5 billion in May. Ive was the designer behind Apple Inc.'s (NASDAQ:AAPL) signature candy-colored desktop computers and the iPhone's distinctive rounded edges. Steve Jobs, Apple's co-founder, once told his biographer Walter Isaacson that Ive wielded more "operational power than anyone at Apple, except me." See Also: Trump Admin's Intel Stake Could Create 'Unintended Inefficiencies' In Global Chip Industry, Warns Fitch Personality, Privacy And Power Problems The report said the team is debating key decisions about the device's "personality," ensuring it doesn't become intrusive or overly talkative -- a problem that has plagued other AI assistants. "Model personality is a hard thing to balance," one insider said. "It can't be too sycophantic, not too direct, helpful, but doesn't keep talking in a feedback loop." Privacy also remains a sticking point, as the device is expected to feature multiple cameras and microphones that constantly collect data to improve its virtual assistant's memory. Altman's Hardware Ambitions Face Reality Check Despite the setbacks, sources said the delays are typical of early-stage product development. OpenAI's goal is to reinvent the smart speaker category, building a "friend who's a computer" -- one that's useful, not creepy. The device is reportedly being developed with Chinese manufacturer Luxshare and could be assembled outside China. OpenAI did not immediately respond to Benzinga's request for comments. OpenAI Hits $500 Billion Valuation Amid Global Chip Push OpenAI, now reportedly valued at $500 billion, has also embarked on a sweeping global push across Asia and the Middle East to secure chips, manufacturing partners and funding. OpenAI reportedly brought in roughly $4.3 billion in revenue during the first half of 2025 -- about 16% higher than its total revenue for all of last year. The company is reportedly on pace to hit its full-year revenue goal of $13 billion while keeping cash burn near $8.5 billion. The $500 billion valuation milestone comes at a critical juncture for the Altman-led firm, which is in talks with Microsoft Corp. (NASDAQ:MSFT) about shifting toward a more conventional for-profit structure. According to Benzinga's Edge Stock Rankings, MSFT demonstrates an upward price trend over the short, medium and long term. Click here to explore the stock in detail, along with its peers and rivals. Read Next: Geoffrey Hinton Says Be A 'Plumber' If You Want To Have A Safe Job, 'Godfather Of AI' Says Everyone Doing 'Mundane Intellectual Labor' Will Be Replaced Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. MSFTMicrosoft Corp$516.95-0.08%OverviewAAPLApple Inc$257.90-0.05%Market News and Data brought to you by Benzinga APIs

Open AI and Jony Ive's AI Device May Be Delayed Due to Privacy Issues

It will always be listening, causing concerns related to when it should speak up, as well as how it will handle user privacy. OpenAI and Jony Ive's startup have been working on a secret AI device, but they have reportedly stumbled upon technical challenges related to the functionality and privacy aspects. In May 2025, OpenAI acquired a startup called io, founded by Apple's former chief design officer, Jony Ive. The idea behind the acquisition was to help OpenAI "create a new generation of AI-powered computers," according to CEO Sam Altman. The first of these devices was rumored to go on sale sometime in 2026, but there might be a delay. As reported by Financial Times, OpenAI and Ive's startup, io, are working on "a palm-sized device without a screen that can take audio and visual cues from the physical environment and respond to users' requests." However, the two entities have come to a halt deciding the personality of the onboard AI assistant, its computing network, as well as concerns related to privacy. The biggest concern here is how the device will handle user privacy. One source familiar with the working mentions that the AI device will have an "always on" listening mode- similar to Amazon's Alexa. However, it wouldn't need a wake word; instead, it should be able to respond to you whenever necessary. This is the cause for contention, as OpenAI and Ive are struggling to ensure when the device speaks up and when it should be appropriate to end the conversation. Moreover, it can be a huge let down among those who are concerned about their privacy. AI devices like the Humane AI pin, which was sold to HP, attempted seomthing similar but received a lot of negative reception. Rabbit R1, another AI gadget, also failed to lure the masses. So, it would be interesting to see what OpenAI and Ive can come up with, and how they will manage to convince the users to buy their AI device.

Ive rebukes smartphones, vows to create 'happy' AI devices with OpenAI (OPENAI:Private)

Jony Ive offered a rebuke of smartphones and tablets, claiming they have led us to have an "uncomfortable relationship with our technology" during a fireside chat with OpenAI CEO Sam Altman at the company's DevDay 2025 on Monday evening. Ive, who Ive believes that smartphones and tablets have created an uncomfortable relationship with technology, causing anxiety and disconnection among users. Ive aims for AI devices that increase happiness, fulfillment, and connectedness, making technology less exclusive and more affordable. No specific details or descriptions about the new AI products' features or costs were provided during the chat.

OpenAI and Jony Ive Hit Roadblocks in Developing AI Device | PYMNTS.com

Ive and the high-profile AI startup are developing a palm-sized, screenless device that can take audio and visual cues from the physical environment and respond to users' requests. But as the Financial Times (FT) reported Sunday, sources familiar with their plans said OpenAI and Ive had yet to solve crucial problems that could hold back the device's release. Among the obstacles are deciding on the device's "personality," privacy issues and budgeting for the computing power required to run OpenAI's models on a mass consumer product. "Compute is another huge factor for the delay," said one source close to Ive. "Amazon has the compute for an Alexa, so does Google [for its Home device], but OpenAI is struggling to get enough compute for ChatGPT, let alone an AI device -- they need to fix that first." Meanwhile, a source close to OpenAI said the issues were just normal parts of the product development process. Multiple sources familiar with the plans said OpenAI and Ive were at work on a device roughly the size of a smartphone that users would communicate with via a camera, microphone and speaker, with one source indicating it might have multiple cameras. OpenAI acquired Ive's company io for $6.4 billion in May. At a conference in Paris a few weeks later, OpenAI CFO Sarah Friar said the deal would lead to a new computing era in the same vein as the leap from flip phones to the touchscreen smartphone. "In every tech era, there's always been a new substrate that really brought it to life," Friar said at the Viva 2025 tech conference. "In the world of the PC or the internet generation, it was the graphical user interface that really brought it to the world. ... When the mobile generation happened, what really brought it to life was the touchscreen on the phone." Today's AI use is still tied to old modalities, she said, similar to the way early mobile experiences simply shrunk desktop websites. "Anything I imagine right now is probably going to seem a little cute in hindsight," Friar added. "In the same way that 2½ years ago, ChatGPT would have felt like a dream -- and here we are, 2½ years later, with half a billion people using it every single week." News of the apparent device issue came days after OpenAI reportedly surpassed Elon Musk's SpaceX to become the world's most valuable startup, following an employee share sale that valued the company at $500 billion. As the FT noted, one of the ways OpenAI is hoping to justify the price tag is its push into hardware.

OpenAI DevDay 2025: Jony Ive hints at AI devices that 'make us happy'

Ive hopes the devices can "make us happy, and fulfilled, and more peaceful, and less anxious, and less disconnected." At OpenAI's developer conference in San Francisco on Monday, CEO Sam Altman and former Apple designer Jony Ive talked about their new line of AI-powered devices. The pair spoke about the "family of devices" they are developing, but offered few specifics, leaving much to the imagination. "As great as phones and computers are, there's something new to do," Altman said on stage alongside Ive, according to Wired. The two confirmed that OpenAI is working on multiple hardware products, though details like design, functionality, and use cases remain under wraps. "Hardware is hard. Figuring out new computing form factors is hard," Altman said in a media briefing earlier in the day. "I think we have a chance to do something amazing, but it will take a while." Ive said his team has explored "15 to 20 really compelling product" ideas as they search for the right device to develop. He described his motivation for designing an AI-powered device with OpenAI as a way to change how people relate to the technology they use every day. Also read: DevDay 2025: OpenAI brings third-party apps inside ChatGPT, check details "I don't think we have an easy relationship with our technology at the moment," Ive said. "Rather than seeing AI as an extension of those challenges, I see it very differently." He added that while AI could boost productivity, the main goal isn't efficiency. Instead, he hopes the devices can "make us happy, and fulfilled, and more peaceful, and less anxious, and less disconnected." Earlier reports suggest that OpenAI plans to build a device that doesn't look like a phone or laptop. In a preview for staff, Altman hinted that the product could be aware of a user's surroundings and daily routines. It may even be screenless, relying on cameras and microphones for input. OpenAI has not announced a release date, but late 2026 has been rumoured as a possible target, though development has reportedly faced technical challenges. Also read: After NVIDIA, OpenAI chooses AMD chips for ChatGPT's future: But why? Ive, known for his minimalistic, metallic designs at Apple, joined OpenAI last year through a collaboration between OpenAI and his design firm, LoveFrom, called Io. OpenAI later acquired Io but said Ive would remain independent. Earlier, the duo described their upcoming product as a device that "completely captured our imagination." Altman called it "the coolest piece of technology that the world will have ever seen," while Ive said it could help humans become "our better selves."

OpenAI and Jony Ive's screen-less AI gadget may face delay: Here's what we know

Privacy and usability issues threaten its 2026 release schedule. OpenAI is once again making headlines. The ChatGPT maker, which previously collaborated with former Apple design chief Jony Ive, is reportedly facing significant challenges in developing a new artificial intelligence device, according to the Financial Times. While the type of device and features remain unknown, the company is reportedly planning to unveil it as early as next year. According to the report, the project involves creating a palm-sized device with no screen that will interact with users through audio and visual input from the physical environment. It is part of OpenAI's hardware push, which began earlier this year with the $6.5 billion acquisition of io, a startup founded by Ive and backed by OpenAI CEO Sam Altman. At the time of the acquisition, Altman stated that the partnership would focus on developing a new generation of AI-powered computers. Bloomberg previously reported that the first device was set to be released in 2026. According to sources familiar with the situation, the team is still working to resolve outstanding issues regarding the product's functionality and user experience. These include defining the device's "personality," determining how to protect user privacy, and ensuring compatibility with OpenAI's computing infrastructure. One of the primary challenges is the planned "always on" design. Unlike current AI assistants, which require a specific verbal prompt, the device is designed to engage automatically, speaking up only when it has useful input and ending conversations at the appropriate time. According to the FT, engineers struggled to make this feature work smoothly without becoming intrusive or unresponsive. However, the device's active listening and observation capabilities may also raise questions about privacy and how the data will be handled and stored. These concerns, along with ongoing technical difficulties, may delay the product's debut beyond the 2026 timeframe.