New details leak about Sam Altman and Jony Ive’s coming ‘AI companions’

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In an OpenAI meeting Wednesday, CEO Sam Altman revealed ambitious plans to develop AI-powered devices in partnership with former Apple design chief Jony Ive, targeting the release of 100 million “AI companion” devices that could reshape how users interact with artificial intelligence, according to a new report.

Altman described it to employees as a “chance to do the biggest thing we’ve ever done as a company.” OpenAI’s acquisition of Ive’s io startup is the company’s boldest hardware venture yet, potentially creating the first major alternative to smartphone and computer dominance.

And on Thursday, TF International Securities analyst Ming-Chi Kuo weighed in with possible details about OpenAI’s wearable device.

In the meeting, Altman told OpenAI employees about the $6.5 billion acquisition of Ive’s startup, io, projecting the partnership could add $1 trillion in value to OpenAI, according to a recording reviewed by The Wall Street Journal. It appears to signal the company’s determination to compete directly with Apple and Google in the hardware space.

The device represents what Ive calls “a new design movement” away from the screen-centric approach that has defined smartphones and computers. Unlike traditional devices, OpenAI’s device will be “fully aware of a user’s surroundings and life” while remaining unobtrusive enough to rest in a pocket or on a desk. Altman described it as the “third core device” users would place alongside their MacBook Pro and iPhone.

Ive, who shaped Apple’s iconic products from the iMac to the iPhone alongside Steve Jobs, expressed enthusiasm about his partnership with Altman.

“The way that we clicked, and the way that we’ve been able to work together, has been profound for me,” Ive said during the meeting, drawing parallels to his legendary partnership with Jobs.

Beyond the smartphone paradigm (and not glasses)

My industry research indicates the following regarding the new AI hardware device from Jony Ive’s collaboration with OpenAI:
1. Mass production is expected to start in 2027.
2. Assembly and shipping will occur outside China to reduce geopolitical risks, with Vietnam currently the… pic.twitter.com/5IELYEjNyV

— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) May 22, 2025

For Apple users accustomed to the company’s integrated ecosystem, OpenAI’s approach offers an intriguing alternative. Altman specifically noted the device won’t be a phone or glasses, addressing concerns about wearable technology that Ive previously expressed skepticism about. Instead, the focus appears to be on creating what Altman calls “a family of devices” that could challenge Apple’s hardware-software integration model.

“The current prototype is slightly larger than the [Humane] AI Pin, with a form factor as compact and elegant as an iPod Shuffle,” Ming-Chi Kuo wrote Thursday on X. “One of the intended use cases is wearing the device around the neck. It will have cameras and microphones for environmental detection, with no display functionality. It is expected to connect to smartphones and PCs, utilizing their computing and display capabilities.”

The collaboration emerged from OpenAI’s recognition that existing devices limit AI’s potential. ChatGPT changed people’s expectations about the power of technology, but it is still used in an old paradigm. Altman said the new device “is not the sci-fi dream of what AI could do to enable you in all the ways that I think the models are capable of.”

Still, Kuo pointed to these types of AI devices as the way of the future.

“AI integrated into real-world applications, often termed ‘physical AI,’ is widely recognized as the next critical trend,” he wrote.

Market challenges ahead

The venture faces significant hurdles in a market dominated by Apple and Google, whose software runs virtually all smartphones worldwide. Recent attempts by AI hardware startups — including Humane with its Ai Pin, which Altman previously invested in — have struggled to gain consumer traction. OpenAI’s financial challenges add another layer of complexity. The company expects to lose $44 billion before achieving profitability in 2029.

However, Altman remains optimistic about the timeline, targeting a late 2026 release while promising to “ship 100 million devices faster than any company has ever shipped 100 million of something new before.” The ambitious scale reflects OpenAI’s belief that direct hardware access represents the only path to reaching consumers without relying on Apple and Google’s platforms.