OpenAI's first hardware product is a smart speaker with a camera, designed by Jony Ive

Reviewed byNidhi Govil

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OpenAI is developing its first consumer hardware: an AI-powered smart speaker with a camera priced between $200 and $300. Designed by former Apple chief Jony Ive, the device will recognize objects and faces, but won't ship until early 2027 at the earliest. The company also has smart glasses and a smart lamp in development as it competes with Apple, Meta, and Google.

OpenAI enters the consumer hardware market with ambitious device lineup

OpenAI is making a significant push into physical products with a family of AI-powered hardware devices led by a smart speaker with a camera. According to reports, the ChatGPT maker has assembled a team of more than 200 employees dedicated to hardware development, marking its first major foray into consumer devices

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. The move comes after OpenAI acquired Jony Ive's startup io Products last May in a deal worth nearly $6.5 billion, bringing the legendary former Apple designer into the fold to shape the company's hardware ambitions

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Source: Engadget

Source: Engadget

OpenAI's first hardware product: A smart speaker priced between $200 and $300

The AI-powered smart speaker will be OpenAI's first hardware product to reach consumers, with an expected price point between $200 and $300

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. However, customers shouldn't expect to purchase it before February 2027 at the earliest

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. The device won't be a passive listening product like traditional smart speakers. Instead, it will feature a camera that enables it to observe and interpret its surroundings, including identifying items on a nearby table and monitoring conversations happening in the vicinity

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Source: Tom's Guide

Source: Tom's Guide

Facial recognition system and object identification capabilities

The smart speaker will incorporate a facial recognition system similar to Apple's Face ID, allowing users to authenticate purchases through facial identification

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. This object identification technology represents a step beyond current smart speakers, enabling the device to provide proactive suggestions based on user behavior and environmental context. For instance, the speaker might remind users to get to bed on time the night before an early flight appears on their calendar

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. The camera-enabled capabilities position the device as an ambient intelligence system rather than just a voice assistant.

Smart glasses and smart lamp projects in development

Beyond the smart speaker, OpenAI is "possibly" working on smart glasses and a smart lamp, though these AI gadgets remain in earlier stages of development

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. Smart glasses likely won't reach mass production until 2028, a full year after the speaker's anticipated launch

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. While OpenAI has created prototypes of devices like the smart lamp, it remains unclear whether these products will actually be released to the market

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. Apple is also reportedly developing a smart lamp, adding another layer of competition to the consumer hardware market

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Jony Ive device design creates organizational tensions

The collaboration between Jony Ive's design firm LoveFrom and OpenAI's internal hardware team has sparked some internal friction. Ive still operates LoveFrom as an independent entity responsible for designing potential OpenAI devices, while OpenAI's devices division handles the actual hardware development, software integration, and consumer research

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. Some OpenAI staffers have complained that LoveFrom has been slow to revise designs and shares little about its creative process, even with colleagues working on the same devices within OpenAI

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. The devices division is led by Peter Welinder, a vice president and general manager at OpenAI, and includes several Apple veterans such as Tang Tan on hardware, Evans Hankey on industrial design, and Scott Cannon on supply chain

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Competition intensifies in AI-powered hardware devices space

OpenAI faces formidable competition in the consumer hardware market from established players already shipping products. Meta has achieved strong success with its Ray-Ban smart glasses, which allow users to record, take pictures, and stream content through integrated cameras

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. Apple, Ive's former employer, is reportedly developing its own smart glasses, an AI-powered pendant, and AirPods with cameras

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. Google is also advancing its own smart glasses efforts

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. The HomePod comparison is particularly apt for OpenAI's speaker, as it represents another attempt to reinvent the smart home hub

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Source: 9to5Mac

Source: 9to5Mac

Privacy concerns and technical challenges ahead

The project has already encountered delays due to technical issues, privacy concerns, and logistical challenges surrounding the computing power necessary to run mass-produced AI devices

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. A device that continuously watches and listens to users raises significant privacy questions that OpenAI will need to address before launch. The company must balance the benefits of ambient intelligence with consumer expectations around data security and surveillance. For a company with no hardware track record, breaking into this market presents genuine challenges not just technically, but commercially, as consumers have become more selective about adopting smart home and wearable products

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. The success of these AI-powered hardware devices will depend on whether OpenAI can demonstrate clear daily value while navigating the complex landscape of augmented reality, computing power requirements, and consumer trust in an increasingly crowded field of AI gadgets.

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