In a move that could reshape the consumer electronics landscape, OpenAI is developing a new device that, according to insiders, will feature a distinctive design with moving parts, priced above $300. This product is essentially a screenless smart speaker, shaped like a donut and roughly the size of a hockey puck, designed for easy one-handed carrying around the home. OpenAI aims to break new ground with this device, which is planned for a 2027 release.
Positioned as an "AI-first" computer, the device is intended to assist users with various tasks. Its design is crafted to help it stand out in a smart speaker market currently dominated by Amazon and Google. This new hardware also offers OpenAI a chance to prove it is not copying designs from Apple (APPL.US), as the two companies are embroiled in a legal battle over whether the AI firm has infringed on Apple's intellectual property, a claim OpenAI denies. A representative for San Francisco-based OpenAI declined to comment on product plans.
While OpenAI ultimately plans to launch a family of devices, this smart speaker is seen as a gentle entry point into the market. Other types of always-on AI hardware, such as smart glasses, have raised privacy concerns. OpenAI expects users to rely on this smart speaker throughout the day. It functions similarly to the ChatGPT voice mode on smartphone apps but with more advanced models for more realistic human-AI interaction. The device is designed to learn more about its users over time, enabling customized conversations that feel more like interacting with a real person. The circular device will include parts that can move on their own, helping to show when it is responding and engaging with the user. The goal is to make the object feel more alive than current static speaker products. It will feature a speaker grille and microphones for receiving commands and conversing with users. The battery-powered item is designed to work in various locations, such as in a user's hand or on a nightstand or kitchen counter. OpenAI also plans to incorporate lights to show when it is listening, making interactions feel more human. Meanwhile, a camera system and other sensors will perceive the surroundings and input visual information to the AI.
In the long term, OpenAI aims to build a device business and someday offer products that could replace today's smartphones. This speaker product is being designed in collaboration with Jony Ive's LoveFrom studio. Ive, who co-founded a device startup that OpenAI acquired last year, is famous for designing the look and feel of the iPhone, iPad, iPod, and Apple Watch. Similar to Ive's past work, the new device will have a premium appearance, using high-end materials like quality metal. The per-unit price OpenAI has discussed ranges from $300 to $400, which is higher than most smart speakers but lower than a standard iPhone.
Apple has cited the metal design in its lawsuit against OpenAI. The iPhone maker claims that OpenAI asked a longtime Apple supplier to develop a metal treatment process for an upcoming product, similar to a process Apple had developed. The lawsuit states, "OpenAI and its co-conspirators misled the partner into believing they had obtained Apple's permission to perform this confidential metal treatment process for OpenAI's benefit." OpenAI has described this allegation as "too vague and general." It is unclear whether the lawsuit refers to this donut-shaped device, another product, or a discarded concept. However, this ring-like design—or the concept of an easily portable smart speaker—is not something Apple has come close to releasing. Although Apple sells the HomePod speaker line, it does not have a battery-powered version and has not yet released an AI-centric home device. However, Apple is indeed developing innovative home products for the future, including a smart home hub with a screen attached to a robotic arm. This approach would allow the device to move in space, enabling it to face the person speaking to it or show different perspectives during a FaceTime video chat.
People familiar with OpenAI's first device say the company believes it has not used or infringed any of Apple's trade secrets. They stated that after Apple filed the lawsuit, OpenAI investigated the matter through an internal inquiry. The company highlighted this in a motion filed late Wednesday to dismiss Apple's lawsuit. The motion reads, "OpenAI is building something entirely new and different from any Apple product." Nevertheless, this week Apple requested an injunction against OpenAI, which, if granted, could complicate the new product's launch. OpenAI has long sought to announce the device this year and launch it in 2027. Insiders say that internally, OpenAI continues to push ahead with its device project at full speed. OpenAI has characterized Apple's accusations as "hasty, aggressive, and with an unusual personal touch." In a letter to members of Apple's legal team, an OpenAI attorney wrote that the lawsuit "is based on a distortion of facts, and the charges are at best speculative." "You are attacking normal business conduct," wrote Patrick Curran, an attorney at Quinn Emanuel, in the letter to Apple. "You are complaining about a situation you caused, including through your own processes and decisions."
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