OpenAI's First Gadget: A Screenless AI Speaker

The long-awaited launch of OpenAI into consumer hardware is said to start with a mobile, screen-less smart speaker that will serve as a “humanlike AI companion,” to live in the home, according to Bloomberg citing sources close to the situation.

Phones are more of a companion than a device

It's designed to be mobile, using a rechargeable battery and motorised parts, and meant to be seen as moving, which will make it seem more like a life form than an appliance and make it feel less intrusive than a traditional smart speaker, which is usually fixed to a wall or some other stationary part of the room.

It will be equipped with a camera and environmental sensors to scan the surroundings, and have a high-tech version of ChatGPT's voice mode, reports Bloomberg.

The product, still in development, is designed to be used “as a human-like artificial intelligence companion that resides in the home,” people with knowledge of the plans said, adding that it will control smart-home devices, play music and movies, answer questions and respond to messages.

Design Pedigree and Ambition

Evans Hankey, Apple's former head of industrial design and Jony Ive's studio LoveFrom are leading the way in development. Tang Tan, OpenAI's chief hardware officer and former iPhone design lead, leads the enterprise hardware initiative that covers about five hardware products, ranging from an "eventual" home robotics line to a pendant wearable, and eventually hopes to create something that can supplant the smartphone.

OpenAI is expected to roll out the AI later this year, and then commercialize it in 2027, but there's a risk that will be impacted by the ongoing lawsuits.

Apple's Trade-Secrets Lawsuit

Last week, Apple filed a lawsuit against OpenAI and two former Apple engineers over alleged misappropriation of trade secrets to help speed up the hardware program, including claims of the use of a proprietary metal finishing process and confidential product specifications.

OpenAI has come up with a denial, according to Bloomberg, which quoted a company spokesperson saying it had "no interest in other companies' trade secrets.

How is this category heating up?

OpenAI is entering a direct competition with Amazon's Echo, Google's Nest and Apple's HomePod batteries, and as capital starts flowing into the AI hardware space generally, rival company Hark – which was founded by Amazon's Brett Adcock – just raised a $700m Series A funding round at a $6bn valuation of its "personal intelligence" hardware.

The Bigger Picture

With this hardware move, OpenAI's message is clear: The next consumer AI battle is going to be waged by physical devices that will allow people to interact with AI, and which will hold a great deal of personal data.