OpenAI CEO Sam Altman has officially confirmed what many had been speculating for months—OpenAI is working on its first hardware product. And it’s not doing it alone. Apple’s legendary designer Jony Ive is on board, and the project is being developed under a new division called IO, which OpenAI acquired for a massive $6.5 billion. According to Altman, this is set to be the “biggest thing” the company has ever done.
Minimalist iPod vibes, minus the screen
Analyst Ming-Chi Kuo thinks the upcoming AI device could take inspiration from the iPod Shuffle, but with a futuristic twist. The form factor will be compact, maybe a little chunkier than the Humane AI Pin, but still very minimalist and screen-free. Instead of a display, the device is expected to use cameras and mics to understand its surroundings. One concept floating around is that you’ll wear it around your neck and connect it to your phone or PC for computing power and display.
OpenAI’s hardware shift is all about redefining how we use AI
To avoid geopolitical issues, OpenAI is reportedly setting up production in Vietnam. Kuo says assembly and shipping will happen outside China, giving the company more control and fewer international headaches. It’s also a move that aligns with growing trends in tech manufacturing, as more companies diversify their production hubs.
This project is a big shift for OpenAI, which has so far focused entirely on software like ChatGPT. With this move into physical products, Altman and Ive want to create a whole new way of interacting with AI—something more ambient, less screen-heavy, and integrated into your everyday life.
The goal? 100 million units, $1 trillion in value
Altman’s ambitions are sky-high. According to reports from The Wall Street Journal, he’s told employees that this AI device could eventually sell over 100 million units and potentially add $1 trillion to OpenAI’s overall valuation. Those are bold claims, but with a dream team like Altman and Ive, people are definitely watching.
The timing of this announcement wasn’t lost on anyone. Kuo believes OpenAI might have timed this reveal to steal a bit of attention from Google’s I/O 2025 conference. And honestly, it’s working—everyone’s talking about what OpenAI is doing next.
This has been in the works for a while
Altman and Ive have actually been working together since 2023, when OpenAI first took a 23% stake in IO. The rumours of an AI-first device started back then, and now it looks like we’re finally seeing it come to life.
