OpenAI's First Device To Be Movable, Screenless Speaker To Challenge Apple

OpenAI's much-anticipated push into consumer devices is slated to begin with a mobile, screen-free smart speaker designed to be a new type of home computer for the AI era, according to people familiar with the matter.

The product - still under development - is meant to serve as a humanlike AI companion that lives in the home, said the people, who asked not to be identified because the project hasn't been announced. It will help control smart-home appliances, play media, answer questions, respond to messages and tap into the range of capabilities offered by OpenAI's ChatGPT, they said.

The device represents a critical next step for OpenAI, a top developer of AI models that is poised for an initial public offering in the coming months. The move will vault the company into deeper competition with the likes of Apple Inc., Amazon.com Inc. and Alphabet Inc.'s Google, and the push has already met some resistance.

Apple sued OpenAI last week, accusing the company of stealing trade secrets. But OpenAI believes that the device veers significantly from anything Apple has on the market today and that it's unlikely that it violates trade secrets belonging to the iPhone maker, the people said.

Shares of audio-device maker Sonos Inc. tumbled more than 10% in late trading before paring the losses. Apple fell less than 1% to a low of $313.52.

OpenAI's success in hardware will hinge on bringing a novel approach to the market - something it aims to do with the smart speaker. For instance, the device's technology is meant to become increasingly personalized and proactive as it gains a deeper understanding of its owner over time, according to the people.

OpenAI envisions the device anticipating needs, surfacing information proactively and serving as an expert on its user, they said. Though the speaker is designed to stay in the home, it will be easy to move around the house.

OpenAI believes the product's defining feature will be its personality and ability to connect on a humanlike level with users. The speaker incorporates mechanical elements that can move on their own, creating a sense that it is alive and not just an object responding to commands. The machine also will draw on personal information such as emails to better understand its owner.

The goal is for the device to feel like a companion and become a physical manifestation of OpenAI's ChatGPT. Still, the exact plans could change as the company works through the development and legal process. An OpenAI spokesperson declined to comment.

The device's communication abilities will rely on a more advanced version of the ChatGPT Voice Mode - GPT-Live - that OpenAI rolled out this month. The new voice mode is designed to act more like a human. It can listen and talk at the same time, adapt more naturally during conversations, and quickly process information.

Though the new product resembles a speaker, OpenAI internally describes it as the first of its kind: a computer built for AI to help make busy people more productive. It includes a camera and other sensors that help it understand a user's surroundings and context, as well as advanced AI models beyond those available on conventional smart speakers.

Another central difference is that the device includes a rechargeable battery, allowing it to be carried from room to room throughout the day. A user could bring it into the laundry room while doing chores, move it into the kitchen for cooking assistance, and later place it in a living room or bedroom to have it play music. It can also remain plugged into a single room if the customer chooses.

To build up its device business, OpenAI spent $6.5 billion last year to acquire io Products, a startup co-founded by Apple design veteran Jony Ive.

Ive's studio, LoveFrom, also is helping craft the new lineup. And the endeavor involves many former Apple designers and engineers responsible for creating products such as the iPhone and Mac. OpenAI believes the LoveFrom team's expertise in making technology feel personal will help distinguish the company's first hardware product.

In Apple's lawsuit against OpenAI, it alleged that the AI company used trade secrets to accelerate development of devices. OpenAI Chief Hardware Officer Tang Tan, an io Products co-founder and the former head of iPhone product design, was accused of leading a campaign to obtain confidential information about Apple's future products and engineering practices.

While people with knowledge of the matter have said that Tan was famous for taking risks at Apple, they also maintain that the executive is known for building talented development teams, having strong supplier relationships, and working well with creatives and designers. He's passionate about the technology he is working on and can figure out ways to solve hard engineering problems, they said.

OpenAI has hired more than 400 other people from Apple, according to the lawsuit. Besides Ive and Tang, Apple's former head of industrial design, Evans Hankey, is leading development of the speaker and other future OpenAI products. Last month, OpenAI hired Paul Meade, a longtime senior Apple executive who led development of the Vision Pro headset and future smart glasses.

Though Apple sells the HomePod and HomePod mini smart speakers, OpenAI doesn't see them as comparable to what it is building. The new speaker's audio system and other hardware differ substantially from Apple's designs, and OpenAI believes its first product doesn't violate any trade secrets, according to people with knowledge of the matter.

In its suit, Apple acknowledged that discovery would be needed to determine whether OpenAI is actually using its technology. OpenAI, meanwhile, said that it has "no interest in other companies' trade secrets." "While we take these allegations seriously, we're not aware of any evidence that this complaint has merit," the company said.

It added that it believes "in fair competition and allowing people the freedom to work wherever they choose" and that it is "focused on building innovative technology that empowers people everywhere."

OpenAI's hardware division is working on roughly five different products but plans to start off with the speaker. It's aiming to unveil the device this year before releasing it in 2027, though that could change depending on the legal process. Apple is seeking an injunction on OpenAI's hardware, which could delay the ability to sell devices.

Down the road, OpenAI is looking to develop a mobile AI device capable of replacing the smartphone. It has also explored wearable products, including a pendant, and has shown interest in home robotics.

Apple is preparing its own family of AI-focused home devices, further intensifying competition between the two companies. Its first product in that push, code-named J490, is a long-delayed smart-home command center.

That device will feature a new operating system, a square 7-inch display, videoconferencing abilities and facial recognition. The idea is for the speaker to play music, control appliances and serve as a showcase for the new Siri AI assistant, which is part of the upcoming iOS 27 operating system.

Apple is also working on a version of the display with a larger screen mounted on a robotic arm. That approach will allow the display to reposition itself as it responds to a user's commands. The company is preparing a smart-home security system as well.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)