OpenAI’s first foray into consumer hardware will be a smart speaker priced between $200 and $300, according to individuals familiar with the project. The device, developed in collaboration with Jony Ive’s startup io, is currently slated for an early 2027 release, though that timeline has been impacted by a recent trademark infringement lawsuit.
The speaker is designed to be more than a voice assistant, incorporating a camera to analyze its surroundings, identify objects, and even authenticate users via facial recognition for purchases, similar to Apple’s Face ID. It will also reportedly be capable of processing nearby conversations, raising potential privacy considerations.
The project represents a significant investment for OpenAI, with over 200 employees dedicated to its development. The company, known for its ChatGPT artificial intelligence model, acquired io – founded by Apple’s former design chief Jony Ive – in a $6.5 billion deal in July 2025, a move widely interpreted as a commitment to building a hardware ecosystem around its AI technology. However, the acquisition was followed by legal challenges from iyO, a competing AI startup, alleging trademark infringement.
Court filings related to the lawsuit revealed the initial plan to launch the device before the end of 2026 was no longer feasible. OpenAI has confirmed it has not yet created any packaging or marketing materials for the speaker. The company has also stated it will not use the name “io” or any variation thereof for its hardware products.
While the smart speaker is the primary focus, OpenAI is also reportedly exploring other hardware concepts, including smart glasses and a smart lamp. Details on these projects remain scarce. The development of OpenAI’s hardware division comes as other tech companies, like Google, are also updating their smart speaker offerings. Google’s upcoming speaker will focus on integrating its upgraded Gemini AI experience, a less ambitious approach than OpenAI’s vision for a contextually aware, visually equipped device.
OpenAI CEO Sam Altman has described Ive’s prototype as “the coolest piece of technology that the world will have ever seen,” according to internal communications. The company’s ambition is to create a “third core device” that complements existing technologies like smartphones, and laptops.
