OpenAI is shifting from purely digital tools to a physical product, developed through a collaboration between CEO Sam Altman and renowned designer Jony Ive. The pair have completed their first working models, marking a major step forward in a hardware initiative that has been kept unusually private within Silicon Valley.
The concept is intended to act as a third device that sits alongside a phone and a computer. Altman has described it as something that encourages a quieter relationship with technology. Where smartphones bombard users with constant notifications, he likened this new device to the feeling of sitting beside a tranquil lake rather than wandering through a brightly lit city district.
The product is being developed as an ambient assistant that stays in the background until it genuinely needs to help. It will remain mostly passive, only speaking up when it has genuinely relevant information. Altman said the team aims to create a sense of trust over long stretches of use, without grabbing attention unnecessarily.
The device is reported to have no screen and to be small enough to carry easily. Early versions have been described as understated and tactile. Some sources say it echoes the feel of an iPod Shuffle, possibly with a clip that allows it to be worn on clothing or placed discreetly on a table. It is not intended to resemble a mobile phone, smart glasses, or a smartwatch.
Communication will primarily occur through microphones and perhaps cameras or environmental sensors. It will rely on OpenAI’s most advanced models to interpret speech and situational cues. According to Altman, the device should gradually learn everyday habits, such as remembering where a user left their keys or noting which book they examined while shopping. The aim is to create something that feels observant and genuinely supportive.
OpenAI began taking hardware seriously after buying Jony Ive’s company, io, in May 2025. The acquisition cost roughly AUD 6.4 billion in equity and gave OpenAI access to a group specialising in hardware for AI systems. Ive, whose portfolio includes the iPhone and iMac, now directs hardware design for both OpenAI and the former io team through his creative collective LoveFrom.
The io name quickly became a problem. In June, a startup backed by Google Ventures, called iyO, took legal action, arguing that io and iyO sounded too similar and risked confusing customers. The Ninth Circuit Court agreed and ruled that OpenAI could not use the branding for any related products. As a result, all public references to io were removed from OpenAI materials.
OpenAI has three reasons for creating a physical device. One aim is to gather real-world data through microphones and sensors, information that cannot be collected from the open internet. A second goal is to avoid depending entirely on hardware made by firms such as Apple, Microsoft, or Google. Finally, Altman wants to build a companion device that moves closer to the long term vision of AI shown in the film Her.
The product is intended to complement existing gadgets while establishing an entirely separate category. Altman has said the intention is not to add another screen or another app but to develop a new style of computing tool altogether.
OpenAI leaders confirmed in November 2025 that they have a functioning prototype. They described current iterations as impressive, although earlier builds did not meet expectations. Ive has indicated that a launch within two years is possible. Internal plans point toward late 2026 or 2027, with a goal of bringing the device to mass production quickly and reaching one hundred million units at unprecedented speed.
Potential delays remain, including technical hurdles, privacy-related design decisions, and the fallout from the trademark dispute. Even so, the project appears to be progressing steadily toward a public reveal.