OpenAI and Jony Ive are encountering technical problems as they develop a new AI device for launch next year.
Technical problems delay AI device
Device responds to audio and visual cues
Collaborating since acquisition for $6.5bn
Device may require significant computing power
Challenges include assistant's personality and voice
OpenAI hires experts to boost hardware team
Working with Chinese manufacturers for production
OpenAI’s collaboration with Sir Jony Ive to build a palm-sized, screen-free AI assistant has hit multiple hurdles. Technical, privacy, and infrastructure issues threaten a launch beyond the initial late-2026 target.
Partnership Background
In May 2025, OpenAI acquired io, the hardware startup founded by Jony Ive, in an all-stock deal valued at $6.5 billion. Ive and his LoveFrom team will lead design across OpenAI’s consumer device efforts.[1][2][3]
Device Concept
The device is intended to:
Have no display, relying on speakers, microphones, and one or more cameras to sense context[4][5]
Operate hands-free, responding to voice and visual cues without a wake word[6]
Fit in a user’s palm for ambient computing rather than screen-based apps[7][8]
Key Development Challenges
Designers aim for a natural “assistant” persona that neither dominates conversations nor remains silent at critical moments. Defining when the device should initiate or end dialogue has proven complex.[9][10]
Privacy and Data Governance
An “always-on” mode raises concerns about continuous audio and video capture. OpenAI is drafting strict rules for local processing versus cloud inference to limit data retention and safeguard user privacy.[11][12][13]
Compute and Infrastructure Needs
Real-time inference on large language models requires massive compute resources. OpenAI is assessing partnerships with NVIDIA for multi-gigawatt datacenters and AMD for GPU deployments to meet projected demand.[14][15][16]
Manufacturing and Supply Chain
Component sourcing and assembly partners are not finalized. Delays in supplier agreements could push back production readiness reviews planned for early 2026.[13]
Industry Comparison
Feature
OpenAI–Ive Prototype
Humane AI Pin
Rabbit R1
Screenless
Yes[4]
Yes[17]
Yes
Always-on Listening
Planned
Implemented; criticized[18]
Implemented; limited user base
Launch Target
Late 2026→2027?[19]
Discontinued Feb 2025[18][20]
Delayed; pivoting to enterprise
Privacy Controls
Under development[11]
Minimal; led to user backlash[18]
Basic; opaque policies
Compute Infrastructure
NVIDIA partnership; AMD deal[14][16]
Cloud-dependent; subscription model
Cloud-dependent
Clearing these hurdles could position OpenAI’s device as the first true ambient AI companion. Success hinges on seamless interaction design, robust privacy safeguards, and scalable compute infrastructure. Competitors’ missteps, such as Humane’s AI Pin failure, offer lessons in integration and user trust.
Luca Fischer is a senior technology journalist with more than twelve years of professional experience specializing in artificial intelligence, cybersecurity, and consumer electronics. He earned his M.S. in Computer Science from Columbia University in 2011, where he developed a strong foundation in data science and network security before transitioning into tech media.
Throughout his career, Luca has been recognized for his clear, analytical approach to explaining complex technologies. His in-depth articles explore how AI innovations, privacy frameworks, and next-generation devices impact both industry and society.
Luca’s work has appeared across leading digital publications, where he delivers detailed reviews, investigative reports, and feature analyses on major players such as Google, Microsoft, Nvidia, AMD, Intel, OpenAI, Anthropic, and Perplexity AI.
Beyond writing, he mentors young journalists entering the AI-tech field and advocates for transparent, ethical technology communication. His goal is to make the future of technology understandable and responsible for everyone.
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She earned her B.A. in Cognitive Science from the University of California, Berkeley (2016), where she studied human-computer interaction, AI, and digital behavior.
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