OpenAI and former Apple designer Jony Ive are struggling to develop AI hardware, and the key to AI assistants' personalities is the question.

Jonathan Ive, who designed Apple's iPhone and iPod, has revealed that he is working

https://www.ft.com/content/58b078be-e0ab-492f-9dbf-c2fe67298dd3

OpenAI and Jony Ive may be struggling to figure out their AI device | TechCrunch
https://techcrunch.com/2025/10/05/openai-and-jony-ive-may-be-struggling-to-figure-out-their-ai-device/

OpenAI, an AI company led by Sam Altman, acquired io, an AI hardware company founded by former Apple chief designer Jony Ive, for $6.5 billion (970 billion yen) in May 2025. OpenAI's acquisition of io has led to reports that it is developing AI hardware, but few details of the project have been revealed.

In a video released at the time of the acquisition, Ive said of the AI hardware under development, 'I believe we are on the cusp of a new generation of technology that will literally make us better,' and Altman added, 'Johnny recently let me take home the prototype of this device for the first time. I make a living from it, and I think it's the coolest technology the world has ever seen.'

OpenAI acquires former Apple designer Jony Ive's device startup 'io', developing 'the coolest' AI hardware the world has ever seen, slated for release in 2026 - GIGAZINE

OpenAI's AI hardware has been described as a palm-sized device without a screen that would pick up audio and visual cues from its physical environment and respond to user requests. However, the Financial Times has now reported that OpenAI and Ive have yet to resolve key issues that could delay the release of the AI hardware.

The Financial Times cited sources familiar with OpenAI's plans as saying that the AI hardware Ive and his team are developing faces challenges, including software and operational infrastructure, the 'personality' of the AI assistant that will run the device, privacy issues, and securing large-scale computing resources.

'Amazon has the computing resources for Alexa, and Google has the computing resources for its Home devices. But OpenAI doesn't have enough computing resources even for ChatGPT, much less for AI devices, so they have to do something about the computing resources first,' the source said.

OpenAI sources say these struggles are normal in the product development process. Sources say the device being developed by OpenAI and Ive will be roughly the size of a smartphone, with a camera, microphone, and speaker to interact with the user. They also say it may have multiple cameras.

The device can be placed on a desk, table, or carried in your hand, and is said to be 'always on,' with sensors collecting data throughout the day to build a 'memory' for the AI assistant.

OpenAI this week surpassed Elon Musk's SpaceX to become the world's most valuable private company with a post-trade valuation of $500 billion. One way the ChatGPT developer is justifying its lofty valuation is by expanding into hardware.

OpenAI's goal is to transform smart speakers like Amazon Echo and Google Home into more powerful and practical machines, going beyond their limited use cases like playing music or playing kitchen timers. While OpenAI and Ive aim to create 'smarter, more useful devices,' those involved say a major challenge is determining the device's 'voice' and behavior.

Like ChatGPT, the goal is for the device to respond only when necessary, without talking too much or losing track of when to stop. An anonymous source said of the AI hardware OpenAI is developing, 'The ideal is not a 'weird AI lover,' but a 'close friend-like computer' that's smarter than Siri.' 'We're exploring a form that's friendly but not intrusive.' Another source said, 'Balancing the AI's personality is difficult,' adding, 'It can't be too obsequious or overbearing. We want it to be kind, but not talk in an endless loop.'

OpenAI's AI hardware will be entering a difficult market. Its 'Friend' AI companion pendant was criticized for being 'creepy' and 'sarcastic.' Humane, an AI pin company in which Altman personally invested, also sold the business to HP, effectively withdrawing from the market.

Humane discontinues Ai Pin and sells business to HP, online functions will be shut down at the end of February 2025, and all data will be lost - GIGAZINE

by Ged Carroll

OpenAI is accelerating its hiring to strengthen its hardware business. OpenAI acquired io and has hired more than 20 former Apple hardware engineers whom Ive poached from Apple. Apart from the io acquisition, OpenAI is said to have hired more than a dozen hardware experts in 2025 alone.

OpenAI is reportedly working with several manufacturers, including Chinese contract manufacturer Luxshare, to develop its first devices, although final assembly may take place outside of China, according to the Financial Times.

The court documents also reveal that the AI hardware being developed by OpenAI is not wearable or earphone-type, and is planned for release after 2026.