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In the latest OpenAI news, the company led by Sam Altman is facing major setbacks in its ambitious plan to launch an AI-powered hardware device designed in collaboration with Apple’s iconic designer Jony Ive. According to a Financial Times (UK) report, the project has encountered several critical issues that may postpone its scheduled 2026 release.
Compute Shortage Poses a Major Hurdle
The report highlights one of the biggest challenges—a lack of computing resources. Even as OpenAI powers its widely-used ChatGPT, the company is struggling to secure sufficient computing capacity for a consumer-grade AI device.
“Amazon has the compute for Alexa, and Google has it for Assistant, but OpenAI is struggling to get enough compute for ChatGPT, let alone a new AI device,”
— Financial Times source
This limitation poses a severe bottleneck for the hardware project, which requires extensive computational power to operate advanced large language models (LLMs) on the go.
Software and Privacy Challenges Add Complexity
While Jony Ive and his design team have reportedly completed the device’s hardware blueprint, the real challenge now lies in software integration and AI assistant design. OpenAI engineers are working to finalize the assistant’s “personality,” privacy safeguards, and data management strategies.
The AI device—rumored to operate without a screen—would depend heavily on audio and visual inputs from built-in microphones and cameras. It aims to act as a smart, ever-present assistant that can process daily interactions and remember user habits.
However, experts suggest that managing this level of data collection responsibly while maintaining privacy will be a major test for OpenAI.
The $6.5 Billion Collaboration with Jony Ive
Back in May 2025, OpenAI acquired Jony Ive’s design startup io for $6.5 billion. This strategic move was seen as a bold step toward integrating Apple-level design aesthetics into the AI ecosystem. Ive, who played a pivotal role in creating Apple’s iMac, iPod, and iPhone, brought decades of consumer tech design experience to OpenAI.
Since then, both Ive and Altman have reportedly been working on a “smartphone-sized AI companion” that relies on voice and vision instead of a traditional display.
Always-On AI Assistant: Innovation or Privacy Nightmare?
According to the Financial Times, the new device will be “always on,” continuously listening and observing to enhance its understanding of the user’s behavior. While this could create a highly personalized AI experience, it also raises serious privacy concerns about constant data collection.
Designing the assistant’s “voice,” tone, and behavior is another challenge, with OpenAI trying to balance human-like interactivity with ethical AI principles.
A person close to OpenAI noted, “Such challenges are part of the product development process, but the company needs to ensure trust and safety at every step.”
What This Means for the Future of AI Devices
The delay in OpenAI’s AI hardware project reflects a broader industry struggle: balancing innovation, design, and infrastructure in the fast-paced world of artificial intelligence. As OpenAI continues to push boundaries, solving compute shortages and privacy concerns will determine not only the success of this device but also the future of AI-driven consumer electronics.
For now, all eyes remain on Sam Altman and Jony Ive as they work to overcome these hurdles and redefine what personal AI can be.
