By Rajwa Quasim
OpenAI is reportedly expanding its market and venturing into building AI hardware devices. According to TechCrunch, the device is likely to be a mobile smart speaker with AI integration that can sync with ChatGPT. It is likely to be released in 2027.
The report further describes the product as “human like AI companion that lives in the home” and will have a donut-like shape that is easily portable. It is expected to be made of metal with a premium look and certain “moving parts.” The price range of OpenAI’s AI smart speakers will be somewhere between $300-$400.
The ChatGPT makers device appears to be different than traditional smart speakers. The device could have its own personality and will be able to learn about its owner over time to provide more personalized responses and services. It would also have access to the user’s emails and other digital systems. OpenAI is developing the device in partnership with a design studio called LoveFrom, which was founded by former Apple developer Jony Ive.
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The move also came up with legal battles. Apple sued the ChatGPT maker, accusing the company of stealing trade secrets, allegations OpenAI has denied. OpenAI has since filed a motion to dismiss the lawsuit, saying it has “no use, need or desire” for Apple’s trade secrets. Apple alleges that OpenAI orchestrated an effort to obtain confidential information through former Apple employees who now work at OpenAI.
As per Jitesh Ubrani, the director of worldwide device trackers at market research firm IDC, “In terms of the trend line, it’s been slowing for quite some time, and we’re expecting declines in the upcoming year.” He pointed out that the shipment volume of such devices has declined drastically in recent years, falling from more than 100 million units to tens of millions. The data shows a 16.3% decline in 2023 compared with the previous year, followed by another 11.8% decrease the year after.
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Former OpenAI executive Fidji Simo criticized the ChatGPT maker for being distracted by side projects rather than focusing on crucial opportunities. She cited Sora, which was shut down in April, as an example. The AI-integrated smart speaker is also expensive compared with Amazon’s smart speakers, which cost between $40 and $240, depending on the model.
OpenAI is not alone in trying to make everyday life easier by integrating AI into consumer devices. Hark, an AI lab founded by Brett Adcock, raised an oversubscribed $700 million Series A in May at a $6 billion valuation to develop what it calls “personal intelligence” — proprietary AI models paired with custom hardware designed as a “universal interface between humans and machines.”
OpenAI has yet to reveal the product or provide further details about the device it is developing.