OpenAI’s mystery device in partnership with Jony Ive could replace your screens

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OpenAI is buying Jony Ive’s startup iO Products in a $6.5 billion deal and the internet has been buzzing with speculations around the AI company’s hardware prospects. Ive, who is known for creating the early designs of iPhones, is on board as the creative head to help the Sam Altman-led company develop devices that are tailored for the AI era.

According to a report in The Wall Street Journal, Altman gave a preview to his staff on Wednesday (May 21) of the devices that he is aiming to build with Ive. He reportedly laid out plans to ship 100 million AI companions that he hopes will become a part of everyday life. The report said that Altman informed employees that this was the opportunity to do the ‘biggest thing we’ve ever done as a company here’. He went on to suggest that the $6.5 billion acquisition also has the potential to add $1 trillion in value to OpenAI.

During the preview, Altman and Ive dropped some hints about the secret project they have been working on. Reportedly, the maiden product will be capable of being fully aware of a user’s life and surroundings. It will be unobtrusive and one could carry it in their pockets or one’s desk. It could also be the third device after a MacBook and iPhone that one would put on their desk.

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The publication has earlier reported that the device will not be a phone and the duo wants to take users off their screens. Altman has also said that it would not be a pair of glasses. While Ive hinted it would be a new design movement, Altman said that it would amount to a family of devices.

Meanwhile, another user Ben Genskin, shared an AI-generated image of the new hardware being developed by Altman and Ive.

WSJ on Jony Ive and Sam Altman’s OpenAI device:

• The product will be capable of being fully aware of a user’s surroundings and life, will be unobtrusive, able to rest in one’s pocket or on one’s desk, and will be a third core device a person would put on a desk after a MacBook… pic.twitter.com/96q3YtM7Mu

— Ben Geskin (@BenGeskin) May 22, 2025

Hours after the announcement noted analyst Ming-Chi Kuo shared his industry research about the AI hardware on his X account. Kuo said that mass production is expected to start in 2027. The assembly and shipping will occur outside China to reduce any geopolitical risks. The analyst said that the device may be assembled in Vietnam.

According to Kuo, the current prototype is slightly larger than the AI Pin and it sports a compact form factor similar to iPod Shuffle. He added that the design and specifications may change before mass production. The device will likely have a form that could be worn around the neck. It will likely feature cameras and microphones but without a display. Kuo thinks that one of OpenAI’s motives for announcing its latest collaboration is to shift market focus away from the recent Google I/O.

“Google’s ecosystem and AI integration, showcased in the I/O keynotes, poses a challenge that OpenAI currently struggles to address. As a result, OpenAI is leveraging a new narrative to redirect attention. That said, AI integrated into real-world applications, often termed “physical AI,” is widely recognized as the next critical trend,” he said. Kuo said that this partnership evokes Alan Kay’s adage that people who are serious about software should make their own hardware.