AI giant OpenAI is no longer content with just software; thanks to a historic partnership between CEO Sam Altman and legendary designer Jony Ive, it’s stepping directly into the consumer hardware market. The first prototypes of this project, one of Silicon Valley’s most closely guarded secrets, have been completed, marking a significant milestone for the company’s future.
Rethinking Personal Technology: A ‘Peaceful Cabin’ Experience
The new AI hardware concept doesn’t aim to replace phones or laptops. It’s being developed as a “third device” to sit alongside modern devices.
OpenAI CEO Sam Altman described the product as a device offering a calmer experience, in contrast to the constant notification-filled environment of modern smartphones. Comparing current devices to “walking through Times Square,” he said the aim of this new product is to make the user feel “like sitting in a peaceful cabin by a lake.”
The device is expected to remain passive until needed, only interrupting the user if they need to share something truly useful or important. It’s being built as an environment assistant that is constantly aware, contextually responsive, and reacts at the appropriate time. Altman stated that the goal is to give users a sense of peace and security over time, without constantly demanding attention.
The hardware is known to be screenless and likely pocket-sized. Early prototypes are described as simple and tactile. Some reports suggest the device has a clip-on design reminiscent of an iPod Shuffle, which can be worn around the neck or placed on a table. It’s not expected to look like a phone, smart glasses, or smartwatch.
Interaction will occur via microphones and possibly cameras or sensors. The device will rely on the latest OpenAI models to understand spoken queries and real-world context; it will listen, observe, and remember.
Altman said the device should be able to remember things like where the user put their keys or which book they were looking at in the store. The main goal is to create a device that feels intuitive, aware, and helpful over extended periods of time.
OpenAI launched its major hardware expansion in May 2025 by acquiring Jony Ive’s startup, ‘io’. This $6.4 billion stock deal gave OpenAI access to a team focused on AI-specific hardware design. Ive, known for his iPhone and iMac designs at Apple, took on the design of this new device and currently leads the design work of both OpenAI and the former io team under his creative firm, LoveFrom.
However, the ‘io’ brand became a legal issue after being sued by ‘iyO’, a Google Ventures-backed startup, due to its similar pronunciation. The court prohibited OpenAI from using the name.
The device is currently in the prototype stage. Altman and Ive confirmed in November 2025 that they had a working version which they described as “awe-inspiringly good”.
Ive stated that the device could be released in less than two years. Internally, the target is set for late 2026 or 2027. OpenAI hopes to rapidly scale up production, shipping 100 million units at a rate no company has ever achieved before. However, factors such as technical design, privacy concerns, and an ongoing brand dispute could delay the timeline.
