Sam Altman, CEO of OpenAI, attended the annual Allen & Company Sun Valley Media & Technology Conference held at Sun Valley Resort in Sun Valley, ID, USA on July 8, 2025.
David A. Grogan | CNBC
OpenAI CEO Sam Altman said Friday that the artificial intelligence startup has finally completed its first prototype of a hardware device.
“Finally, we have the first prototype,” Altman said in a video posted Monday by Emerson Collective, which invests in entrepreneurs. “I can’t believe how amazing this work is and how exciting it is.”
Mr. Altman was speaking to his former character during an on-stage discussion. apple Design chief Jony Ive and Laurene Powell Jobs, wife of late Apple co-founder and CEO Steve Jobs and founder and president of Emerson Collective.
In May, OpenAI announced it would acquire Ive’s startup io for $6.4 billion in stock to make new AI devices. Ive was responsible for designing the hardware project. Since then, OpenAI and io have remained relatively quiet about the project.
Ive said he expects to be able to unveil the device within two years. He said much of the new hardware development process is unpredictable.
“Leaders are very uncomfortable with ambiguity, especially in large companies that value predictability,” Ive says.
Altman didn’t answer questions about what exactly OpenAI is building, but said the company is targeting a more gentle “vibe” of hardware and smartphones, likening it to walking through Times Square.
“That way you get an atmosphere where you’re not walking through Times Square and bumping into each other and everything is competing for your attention,” Altman said. “But it’s like sitting by the lake or in the most beautiful cabin in the mountains and just enjoying the peace and quiet.”
He said smart AI devices will be able to do things for you over a long period of time, filtering things out and understanding when something is important enough to notify you. Altman added that the device “can know everything you’ve ever thought, read, or said.”
OpenAI’s hardware plans are being watched closely by rivals and potential customers alike. Companies including Amazon, googleand Meta Companies have released AI-oriented devices like smart glasses and speakers, but none have been big enough to reshape the hardware industry. Startups are also experimenting with new device sizes, such as pendants, and ideas such as giving AI bots personalities.
OpenAI, which is most commonly used for chatbots powered by ChatGPT, could break the stalemate if it launches a larger device, which could ultimately threaten Apple if the product is successful. The iPhone maker has yet to release an AI-focused design, and the company has run into problems rolling out improvements to Siri, its longtime AI voice assistant. Apple announced in March that improvements to Siri would be delayed until 2026.
OpenAI announced last week that it had signed a deal with Foxconn, which makes many consumer electronics products, including for Apple. However, the OpenAI deal with Foxconn focuses on building AI infrastructure, and the companies do not mention manufacturing devices.
Spotlight: OpenAI taps Foxconn to build AI hardware in the US
