Cry Apple! OpenAI's first AI hardware revealed: the smart speaker circuit ushered in “AI-native” disruptors

The Zhitong Finance App has learned that, according to people familiar with the matter, a highly anticipated new OpenAI device will have a unique appearance and be equipped with moving parts that can give it personality. The price may exceed 300 US dollars.

People familiar with the matter said that this product is essentially a smart speaker without a screen. It is shaped like a donut and is about the size of a hockey puck. The design is designed to allow users to easily carry it around the house with one hand.

OpenAI wants to break new ground with this product, which is scheduled to be released in 2027. According to people familiar with the matter, the device will be positioned as an “AI-first” computer that can help users complete various tasks. Its design helps it stand out in the smart speaker market currently dominated by Amazon and Google.

The new hardware will also give OpenAI a chance to prove that it did not copy Apple's (AAPL.US) design. Currently, the two companies are in a tug-of-war over whether the AI company infringes on Apple's intellectual property rights, and OpenAI denies this.

A representative for San Francisco-based OpenAI declined to comment on its product plans.

Although OpenAI eventually plans to launch a family of devices, this smart speaker is seen as a gentle way to enter the market. Other types of always-open AI hardware, such as smart glasses, have raised concerns about privacy.

OpenAI expects users to rely on this smart speaker all day long. It works similar to the company's ChatGPT voice mode on the smartphone app, but comes with a more advanced model for more realistic human-computer interaction. The device is designed to learn more about the user over time, making it possible to tailor conversations to act more like a real person.

People familiar with the matter revealed that this round device will include parts that can move on its own. This will help show when it's responding and interacting with users. The goal is to make this object feel more vibrant than today's static speaker products.

The product will be equipped with a speaker grille and microphone to receive instructions and talk to users. This battery-powered item is designed to work in a variety of positions — for example, in the user's hand, or on a bedside table or kitchen table.

OpenAI also plans to add lights to the device to show when it's listening and make interactions feel more humane. At the same time, camera systems and other sensors will sense the surrounding environment and input visual information to AI.

In the long run, OpenAI aims to establish a device business and one day in the future provide products that can replace today's smartphones.

This speaker product was designed in collaboration with Johnny Ive's LoveFrom studio. Ive co-founded a device startup that was acquired by OpenAI last year, and he became famous for creating the look and experience of the iPhone, iPad, iPod, and Apple Watch.

Similar to Ive's previous work, this new device will have a premium look and use high-end materials such as high-quality metal. The unit price OpenAI has discussed is between $300 and $400, which would be higher than most smart speakers, but lower than the standard iPhone.

Apple mentioned the metal design in its lawsuit against OpenAI. The iPhone manufacturer claims that OpenAI has asked an Apple supplier with whom it has been working for a long time to develop a metal treatment process similar to the one it offers for the upcoming product.

“OpenAI and its accomplices misled the partner into believing that they had permission from Apple to perform this confidential metal treatment process for OpenAI's benefit,” the lawsuit stated.

OpenAI described the allegation as “too vague and general.” It's unclear whether the lawsuit refers to this donut-shaped device, another product, or an abandoned idea.

However, this ring-shaped design — or the idea of an easy-to-carry smart speaker — isn't something Apple has come close to launching. Although Apple sells the HomePod speaker series, it doesn't have a battery-powered version, nor has it released an AI-centric home device.

However, Apple is indeed developing innovative household products for the future. This includes a smart home center with a screen attached to a robotic arm. This approach will allow the device to move around the space, enabling it to face the person you're talking to or show a different perspective during a FaceTime video chat.

People familiar with OpenAI's first device said the company believes the product did not use or infringe on any of Apple's trade secrets. They said that after Apple filed a lawsuit, OpenAI investigated the matter through an internal investigation.

The company emphasized this in a motion filed late Wednesday to dismiss Apple's lawsuit.

The motion reads: “OpenAI is building something completely new and different from any Apple product.”

Still, Apple's request for a ban on OpenAI this week — if approved — could complicate the launch of this new product. OpenAI has long sought to announce the device this year and then launch it in 2027.

People familiar with the matter revealed that internally, OpenAI continues to advance its device project at full speed.

OpenAI tried to attribute Apple's accusations as “sloppy, aggressive, and rarely personal.” An attorney for OpenAI wrote in a letter to members of Apple's legal delegation that the lawsuit “is based on a distortion of facts, and the allegations are speculative at best.”

“You are attacking normal business practices,” Patrick Curran, an attorney at Quinn Emanuel Law Firm, wrote in a letter to Apple. “You are complaining about situations you have caused yourself, including through your own processes and decisions.”