More than 200 people are said to be working on the project. The smart speaker will be the first device to launch and sources familiar with the plans say it is likely to cost between $200 and $300. However, it is not expected to ship before February 2027.

The speaker will reportedly include a camera which would allow the device to take in information about users and their surroundings. The report says the feature is designed to support more contextual responses and interactions.

Smart glasses are also in development, but mass production is unlikely before 2028. In addition, the company is said to be exploring a smart lamp and a wearable pin built for AI-powered interactions.

OpenAI did not immediately respond to a request for comment.

The company formally entered the hardware market in 2025 when it acquired io Products, a startup founded by former Apple designer Jony Ive, for $6.5 billion. Ive’s design studio is now working with OpenAI on the new devices.

This places OpenAI in competition with technology companies that are already developing or selling smart wearables.

Meta Platforms has recorded strong sales of its Ray-Ban smart glasses, which allow users to take photos, record video and stream content through built-in cameras. The glasses also support AI-driven features.

Apple is reportedly working on its own smart glasses while Google is still experimenting with augmented reality hardware after its earlier Google Glass project.

In building its own devices, OpenAI would better manage how users interact with its software. Instead of relying only on apps and partnerships, it could enhance the full experience, from hardware design to AI features.

However, devices built with cameras and sensors may attract regulatory review. Privacy issues are likely to surface, particularly in regions with strict data protection rules such as the European Union.

For now, the first expected product is the OpenAI smart speaker. If timelines are met, customers will not see it on shelves for at least another year.

The project is still in its early stages, but insiders say the device is designed to be compact, context-aware, and powered directly by OpenAI’s advanced language models.

With this, OpenAI is stepping away from software-only products into the competitive consumer hardware market. Unlike smartphones or computers that add AI as a feature, the goal here is to create an “AI-native” product, a device built from the ground up to work seamlessly with artificial intelligence.

OpenAI’s focus on hardware began earlier this year when it acquired io Products, a startup founded by former Apple design chief Jony Ive, in a deal valued at $6.5 billion. 

Ive’s influence is expected to enhance the product’s minimalist design, intuitive controls, and seamless integration with AI systems. More than two dozen former Apple engineers, many from teams behind the Apple Watch and AirPods, are also involved in the project.

Luxshare, which currently assembles iPhones, AirPods and Apple Watches, brings large-scale production and supply chain expertise to the table. OpenAI has also held talks with Goertek, another Apple partner, to supply speaker modules and related components. 

Such collaboration suggests the device may rely heavily on high-quality audio interaction, possibly without a screen.

Analysts argue that this strategy could challenge the place of established companies like Apple, Samsung, and Google. A dedicated AI device could change user habits away from app-based digital assistants on phones, opening the door to entirely new categories of personal technology.

Comparable projects are already in motion elsewhere: Humane’s AI Pin, Rabbit’s pocket-sized R1, and Meta’s AI-powered Ray-Ban glasses are all chasing the same vision — frictionless, ambient computing experiences. 

But OpenAI’s integration of its own models, paired with manufacturing giants like Luxshare, could give it an edge in reaching the mass market.

For now, neither OpenAI nor Luxshare has issued public statements about the device or its release timeline.