OpenAI is moving decisively into hardware, striking a deal with Luxshare Precision, one of Apple’s largest contract manufacturers, to assemble its maiden consumer device, reports The Information. The prototype, as per the report, is a pocket-sized, context-aware gadget built to work closely with OpenAI’s native AI models. If it reaches market, the device could provide an alternative to smartphones as the primary interface for digital life.
Luxshare, based in Shenzhen, is a supplier to Apple, producing millions of iPhones, AirPods, and accessories each year. OpenAI leveraging that same supply chain indicates it is serious about producing devices at mass-market volumes, not just limited prototypes. Reports suggest that OpenAI has also approached Goertek, another Apple contractor responsible for assembling AirPods, HomePods, and Apple Watches, to provide audio components such as speaker modules. By embedding itself into Apple’s manufacturing ecosystem, OpenAI is both tapping into the tech titan’s production networks and heightening tensions with the Cupertino-headquartered iPhone-maker, which suddenly finds one of its most trusted assemblers working with a potential future rival.
This move builds on OpenAI’s earlier acquisition of io, the design firm co-founded by former Apple chief design officer Jony Ive, in a $6.5 billion deal earlier this year. That purchase signaled that CEO Sam Altman intended to take the company beyond its software roots. Ive, best known for shaping the iPhone, iPad, and MacBook, is now guiding a different hardware vision for OpenAI. In May, Altman described his ambition for a “family of devices” that would be born from the partnership with Ive, the first of which would be pocket-sized, contextually aware, and potentially screen-free. At that time, the AI firm aimed to roll out 100 million AI ‘companion’ devices to consumers. The fact that OpenAI has now secured a contract with a major manufacturer suggests that this vision is moving closer to reality.
Early details point to a product that could blur the line between personal assistant and computing device. Sources familiar with the prototype describe it as resembling a smart speaker without a display, but designed for mobility rather than the home. OpenAI has also considered additional form factors, including smart glasses, a digital voice recorder, and a wearable pin, with initial releases targeted for late 2026 or early 2027. Such devices would be designed from the ground up to integrate with AI models like GPT-5, offering always-available contextual awareness — understanding not just commands, but surroundings, history, and user intent. If successful, this could shift how people interact with technology, replacing the smartphone’s centrality with an AI-native interface.
If OpenAI succeeds, the device could be the first mainstream AI-native consumer product, designed around conversational intelligence rather than apps or operating systems. Analysts note that the smartphone has served as the default hub for digital life for nearly two decades, but the rise of generative AI creates an opening for new paradigms. An AI device that understands context, learns personal preferences, and acts proactively could reduce dependence on traditional app stores, threatening the service revenue streams that Apple and Google rely on. A pocket AI companion could, for example, handle travel bookings, shopping lists, reminders, and communication tasks without requiring the user to open or even own a smartphone. That kind of disruption would echo the original iPhone’s impact on PCs and feature phones.
Still, obstacles remain. Consumer hardware is notoriously difficult, with many startups — including Humane, which released its AI Pin earlier this year — struggling to gain traction. Even Apple has faced lukewarm reception for new categories like the Vision Pro headset. For OpenAI, the challenge will be to make its devices both technically capable and appealing to mass-market consumers. Unlike Apple, it does not yet have an ecosystem of services, retail stores, or repair networks to support hardware customers. Partnering with Luxshare and Goertek addresses the manufacturing side, but the marketing, distribution, and customer support layers are still undefined.
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