OpenAI's first AI hardware will be as tiny as iPod Shuffle, will enter mass production in 2027: Report
OpenAI CEO Sam Altman topped the news charts this week with his announcement of entering the hardware world. He was rumoured to be secretly working on something like that, but in an announcement on Wednesday, he confirmed that OpenAI is working on an AI device. This ambitious new project is born from OpenAI's $6.5 billion acquisition of Ive's company IO. But the big question since the announcement has been: What will this AI device look like? There have been a number of speculations – some suggest it could be an AI smart glass, while some believe it could be similar to the Humane AI Pin. Industry analyst Ming-Chi Kuo is leaning towards the latter. advertisementKuo estimates that the OpenAI hardware will sport a compact form factor, which will be reminiscent of the iconic iPod Shuffle, but will be slightly larger than the Humane AI Pin. While the design and specs could still evolve, the early prototype suggests a strong focus on elegance and minimalism, which are also trademarks of Ive's past work at Apple.Kuo says the device won't be assembled in China. Instead, OpenAI is looking at Vietnam as the likely production base to sidestep potential geopolitical complications. 'Assembly and shipping will occur outside China to reduce geopolitical risks, with Vietnam currently the likely assembly location,' he wrote in a post on X.
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The device is also expected to ditch a display entirely. Instead, it will rely on built-in cameras and microphones to detect and interpret its surroundings. 'It will have cameras and microphones for environmental detection, with no display functionality,' Kuo wrote in the post. One use case in mind: wearing it around the neck, in a nod to more ambient, ever-present interaction with AI. It will connect to smartphones and PCs to tap into their computing and display capabilities.While OpenAI has yet to reveal what the final product will look like, this new information offers a sneak peek into the direction Sam Altman and Jony Ive are taking. But one thing's for sure: The move signals a dramatic shift for OpenAI, which has until now been focused entirely on software like ChatGPT. But with this push into physical products, the company hopes to redefine how we interact with artificial intelligence.The announcement of the IO acquisition earlier this week confirmed long-rumoured hardware ambitions at OpenAI. 'It became clear that our ambitions to develop, engineer and manufacture a new family of products demanded an entirely new company,' Altman and Ive said in a joint blog post.Kuo also believes that the timing of this announcement is also strategic. Kuo suggests it could be a way for OpenAI to steer attention away from Google's recent I/O conference, where the tech giant showed off its deep ecosystem and AI integration. 'OpenAI is leveraging a new narrative to redirect attention,' Kuo noted.advertisementAltman appears to have high hopes. According to The Wall Street Journal, he told employees that this could be 'the biggest thing we've ever done as a company' — and even claimed it might add $1 trillion to OpenAI's valuation. He also reportedly said that OpenAI could sell 100 million units of the AI device.The new IO division will be led by OpenAI executive Peter Welinder, who has worked on experimental products and robotics in the past. The team includes talent from a mix of backgrounds across hardware, software, and manufacturing.This also isn't the first time Altman and Ive have worked together. The two collaborated in 2023, when OpenAI acquired a 23 per cent stake in IO. Those early rumours of an 'AI-first device' began around then, and gained momentum earlier this year when Altman hinted at a new kind of product that would change how people interact with AI.
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