“ChatGPT Entities” are coming! OpenAI's first hardware has surfaced: a smart speaker without a screen is positioned as an “AI partner”, and Apple's lawsuit may become the biggest variable

The Zhitong Finance App learned that, according to reports, the much-anticipated artificial intelligence giant OpenAI's first product to enter the consumer device field will be a portable, screen-less smart speaker. This device, which is still under development, is internally positioned as a “human-like AI companion living in the home,” and aims to become a new type of home computer in the age of artificial intelligence. This news comes as OpenAI is preparing to conduct an initial public offering (IPO) within the next few months. This move will enable it to compete more directly with tech giants such as Apple (AAPL.US), Amazon (AMZN.US), and Google's parent company Alphabet (GOOGL.US).

This device, which is still under development, is internally positioned as a “home AI companion with human characteristics,” which can control smart home devices, play media, answer questions, reply to messages, and fully utilize all the functions of ChatGPT.

This product marks OpenAI's critical transformation from a pure AI model developer to a consumer hardware manufacturer, and this comes at a critical time when the company is preparing for an IPO. But that ambitious plan has already been blocked by law from Apple — the iPhone maker sued OpenAI last week, accusing it of systematically stealing trade secrets to speed up hardware development.

After the news was announced, the stock price of audio equipment manufacturer Sonos (SONO.US) once fell sharply by 7% after the report was released. As of press time, the post-market decline was 1.5%. As a brand focused on the audio field, Sonos is seen as OpenAI's most direct competitor to enter the smart speaker market. However, some analysts pointed out that this decline was more a reflection of the repricing of market sentiment than an immediate impact on Sonos' earnings in the 2026 fiscal year.

Apple's stock price, on the other hand, reacted lackluster, and was largely unaffected. Investors seem to think Apple's lawsuit is enough to substantially hinder OpenAI's hardware plans.

“New Home Computer” in the AI Era: More than just a speaker

According to people familiar with the matter, this speaker-like device is described within OpenAI as the first of its kind — a new type of home computer built specifically for AI. Its core design concept far exceeds the scope of traditional smart speakers:

A “life-like” interactive experience. The device's most notable selling point is its personality and ability to establish a human-like connection with users. The device has built-in mechanical elements that can move autonomously, making it feel like it's “alive” rather than just a tool that responds passively to instructions. It will use personal information such as users' email addresses to deepen understanding of users, and the goal is to become a physical expression of ChatGPT.

A mobile family companion. Unlike traditional smart speakers, this device has a built-in rechargeable battery, making it easy for users to move it from room to room throughout the day. Users can take it to the laundry room while doing housework, move to the kitchen while cooking, and then play music in the living room or bedroom.

Sensors and vision capabilities. The device has built-in cameras and other sensors that can understand the user's surroundings and context. It is equipped with an advanced AI model that surpasses traditional smart speakers, and uses a more advanced version of the GPT-Live voice mode launched by OpenAI this month — a mode that supports simultaneous listening and speaking, is more adaptable in conversation, and processes information faster.

Active AI services. OpenAI envisions this device being able to anticipate user needs, actively push information, and gradually become an “expert advisor” in the user's lifestyle. Over time, devices will continue to deepen their understanding of user needs and become more personalized and proactive.

The $6.5 billion acquisition of Jony Ive: a “Apple-style hardware methodology” gamble

OpenAI's hardware ambitions aren't temporary. Last year, OpenAI spent $6.5 billion to acquire iO Products, an AI hardware company co-founded by Apple's former chief design officer Jony Ive (Jony Ive). Ivy's design studio LoveFrom also participated in the creation of the new product line. The project brought together many former Apple designers and engineers who were responsible for products such as iPhones and Macs.

OpenAI believes the LoveFrom team's expertise in creating personalized technology experiences will help its first hardware product stand out. Tang Tan, Chief Hardware Officer of OpenAI, is the co-founder of iO Products and the former head of iPhone product design. According to people familiar with the matter, Tan was known for daring to take risks at Apple. He is good at setting up development teams, maintaining good relationships with suppliers, and being able to find solutions to difficult engineering problems.

OpenAI's hardware division is developing about five different products, but plans to use this speaker as a starting point. Longer term plans include building “a mobile AI device that can replace smartphones.” The company is also exploring wearable products, including a pendant-type device, and has shown a strong interest in household robots.

Apple's “fatal lawsuit”: 400-person relocation and trade secrets battle

Just as OpenAI's hardware plans were gradually becoming clear, a lawsuit from Apple overshadowed all of this. On July 10, Apple filed a 41-page lawsuit in the Northern District of California federal court, listing OpenAI, the hardware company it acquired, and Tang Yew Tan (Tang Yew Tan) and Chang Liu as defendants. Apple accuses OpenAI of systematically stealing Apple's trade secrets to build its hardware business.

Apple's lawsuit paints a picture far more than an ordinary trade secret case:

First, more than 400 former Apple employees joined OpenAI. Apple believes that this is not the departure of individual employees, but rather an organized talent transfer.

Second, interviews are used as intelligence gathering stations. Apple said that when recruiting Apple employees, Tang Tan not only inquired about undisclosed projects, but also required candidates to bring Apple's internal hardware components, parts, and even prototypes during the interview to conduct so-called “presentations and explanations.”

Third, former employees continue to obtain internal Apple data. The most notable plot in the lawsuit comes from a former Apple engineer named Chang Liu. When he left his job to join the OpenAI hardware department, he took a company MacBook that was never returned, and caught a software bug that enabled him to continue to access Apple's internal file servers even after leaving his job. Apple alleges that after joining OpenAI, he used this permission to download confidential documents such as presentations, hardware design drawings, manufacturing details, and test procedures. The complaint quoted a chat transcript: “LOL, I found out I can still access network storage”.

Fourth, supply chain information is used for hardware research and development. Apple claims that OpenAI has contacted Apple's manufacturing partners and asked them to display or replicate Apple's proprietary metal surface treatment technology. One of the suppliers reportedly mistakenly believed that OpenAI had been authorized by Apple.

Apple's wording is extremely tough: “OpenAI's hardware business, which is still in its infancy, has rotten roots because it illegally relies on stolen trade secrets.” Apple's claims include prohibiting OpenAI from continuing to use relevant trade secrets, destroying all data containing Apple's classified information, and redesigning products that may use Apple technology. Apple is also seeking a ban on OpenAI hardware products, which could delay device sales.

OpenAI's Response: Denies Infringement, But Legal Proceedings or Timeline Changes

Faced with Apple's accusations, OpenAI's response was quite restrained. Drew Pusateri, director of strategic communications at OpenAI, said the company was “not interested in other companies' trade secrets.” “While we take these allegations seriously, we have found no evidence that this lawsuit is justified,” OpenAI said.

According to people familiar with the matter, OpenAI believes that this device is very different from any product currently on Apple's market, and is unlikely to infringe on Apple's trade secrets. Although Apple sells HomePod and HomePod mini smart speakers, OpenAI believes that they are not comparable to the products it is developing, and there are significant differences in audio systems and other hardware.

However, the direction of the legal process will have a direct impact on the product launch schedule. OpenAI plans to release this product this year and officially launch it in 2027. But Apple's lawsuit could change that pace. If the court approves Apple's injunction request, OpenAI could be banned from publishing hardware products.

The “race against time” of the IPO window and hardware strategy

OpenAI's hardware layout coincided with a critical window for the company to go public. OpenAI secretly submitted an IPO application to the SEC in June, with a valuation of more than 850 billion US dollars. However, according to the latest reports, OpenAI is already leaning towards delaying the IPO schedule until 2027.

Reasons for the delay include: sharp fluctuations in technology stocks and SpaceX after listing may dampen the enthusiasm of retail investors; the company's desire to wait until financial performance is closer to the $1 trillion valuation target; and the desire to improve the business portfolio among consumer products, corporate tools, and infrastructure partners before entering the open market and subject to quarterly discipline.

The hardware business is critical to OpenAI's IPO narrative. As Titanium Media Analysis points out, OpenAI's lead in the software layer is narrowing — DeepSeek, Llama, Claude, and Gemini's catch-up speed has shrunk from “year” to “quarter.” OpenAI requires hardware as a “hard thing” to break the game. However, the Apple lawsuit may directly affect OpenAI's hardware development route and product promotion pace, which in turn affects the valuation story of its IPO.

From ChatGPT to “ChatGPT entities,” OpenAI is trying to make a leap from the digital world to the physical world. A screenless smart speaker is just the first step — a roadmap of five products, a long-term vision for a replacement for mobile phones, the support of Jony Ive's design, and the migration of the 400-person Apple team — all of this outlines an ambitious hardware blueprint.

However, Apple's 41-page lawsuit is like a sword of Damocles hanging over the head. If the court upholds Apple's injunction request, OpenAI may not only be forced to redesign products, but the pace of progress of the entire hardware strategy will be disrupted. And for OpenAI, which is preparing for an IPO, hardware is not only a new source of revenue, but also a key pillar supporting its trillion-dollar valuation narrative. The victory or defeat of this “AI hardware war” will probably determine the direction of OpenAI in the next ten years — and the courts are becoming the latest battleground to determine the course of this war.