OpenAI is getting serious about hardware, and it’s doing it with one of the most iconic names in tech design. The company is teaming up with Jony Ive, former Apple design chief and the mind behind the iPhone, iPod, and Apple Watch, to build a new AI wearable that could change how we interact with artificial intelligence. And no, it’s not a phone or glasses.
According to a tweet from TF International Securities analyst Ming-Chi Kuo, the device will be worn around the neck and resemble an iPod Shuffle in size and shape. It won’t include a screen. Instead, it will use onboard cameras and microphones to understand its environment and rely on connected smartphones or PCs for computing and display output. The form factor echoes early iPods, designed to disappear into your daily routine while still providing powerful functionality.
The project is being developed by a newly merged company called io Products, a startup led by Ive and recently acquired by OpenAI in a $6.5 billion all-stock deal. OpenAI had already owned a 23% stake before the acquisition. Now, with Ive leading hardware efforts and several former Apple colleagues on board, including Scott Cannon, Tang Tan, and Evans Hankey, the company is going all in on what Sam Altman calls the “third core device” alongside your phone and laptop.
OpenAI reportedly plans to ship 100 million units, with a full launch expected in 2026 and mass production beginning in 2027. Kuo notes that manufacturing will take place outside of China, with Vietnam being the most likely production hub. This move reflects Apple’s recent efforts to mitigate geopolitical risk.
The goal is ambitious: create a class of “AI companion” devices that feel ambient and always available, with no screen to tap or app to open. Just AI, embedded into your life. Altman told employees the product has the potential to be “the biggest thing we’ve ever done as a company,” possibly adding $1 trillion in value to OpenAI. He described it as the kind of leap forward not seen since the smartphone era.
Unlike Humane’s AI Pin, an early entry in this space that flopped due to hardware limitations and battery issues, OpenAI’s device will offload heavy processing to more powerful, existing devices. That hybrid strategy could help avoid the pitfalls that have sunk other hardware startups trying to cram AI into standalone wearables.
Jony Ive described his partnership with Altman as “profound,” comparing their collaboration to his past work with Steve Jobs. He’s calling the project part of a “new design movement,” one that moves beyond screens and builds technology that quietly blends into the background of everyday life.
With OpenAI and Ive now fully aligned and 100 million units on the roadmap, the tech world is watching to see whether this device will become the iPhone of AI or just another forgotten experiment in wearable computing.
