OpenAI faces challenges developing its first AI hardware with Jony Ive

OpenAI’s secretive hardware project with Jony Ive, Apple’s former chief designer, has run into technical challenges that may delay its launch, according to people familiar with the matter.

The device, which has been in development for months, was initially expected to debut in 2026. Those timelines are now in doubt as the team works to overcome both software and infrastructure hurdles.

Earlier, OpenAI acquired Ive’s startup io for $6.5 billion. Since then, speculation around the project has been constant, though official details remain scarce. What is known is that the device is designed to be compact, screenless, and able to respond to both voice and visual commands. The vision is to create a “next-generation smart assistant” — something between ChatGPT and a physical companion.

The most pressing obstacles are not hardware-related but stem from the software and back-end infrastructure. OpenAI must resolve issues around data privacy, the personality of the assistant, and the sheer cost of compute needed to run generative AI at scale on a consumer device.

“Amazon has the compute for an Alexa, so does Google [for its Home device], but OpenAI is struggling to get enough compute for ChatGPT, let alone an AI device — they need to fix that first,” said a source familiar with the project.

According to insiders, the device will be always-on, using cameras, microphones, and sensors to analyze its surroundings. Over time, it is designed to develop “memory,” learning user habits to interact more intelligently. One of the hardest problems, however, is teaching it when not to intrude, avoiding the clumsy over-eagerness of many current digital assistants.

“The concept is that you should have a friend who’s a computer who isn’t your weird AI girlfriend . . . like [Apple’s digital voice assistant] Siri but better,” one source explained.

Balancing personality with behavior remains one of the toughest challenges: the assistant cannot come across as pushy or servile, yet also must not feel cold or mechanical.