The product — currently in development — is designed to serve as a humanlike AI companion in the home. Those familiar with the matter, who chose to remain anonymous due to the project’s confidential nature, stated that it will assist in managing smart-home appliances, streaming media, answering queries, responding to messages, and utilizing OpenAI’s ChatGPT’s extensive features.
This device marks a significant advancement for OpenAI, a leading AI model developer preparing for an initial public offering in the near future. This move will position the company in direct competition with major players like Apple Inc., Amazon.com, and Google’s Alphabet, despite encountering some pushback along the way.
Also Read: Apple suit puts fresh spotlight on OpenAI’s history of legal disputes
Last week, Apple filed a lawsuit against OpenAI, accusing the firm of misappropriating trade secrets. However, OpenAI argues that the upcoming device significantly diverges from Apple’s current offerings and is unlikely to infringe on any trade secrets held by the iPhone maker, according to the sources.
Shares of audio-device company Sonos plummeted over 10% in after-hours trading before recovering some of the losses. Apple shares dipped slightly, hitting a low of $313.52.
OpenAI’s success in hardware hinges on introducing a fresh perspective to the marketplace — an ambition it aims to fulfill with the smart speaker. The technology is intended to become increasingly tailored and proactive as it learns more about its user over time, according to the insiders.
OpenAI envisions the device as one that anticipates needs, proactively presents information, and serves as a knowledgeable companion for its owner. Though the speaker will primarily stay at home, it will be designed for easy mobility throughout the house.
Also Read: OpenAI to shut down ChatGPT Atlas browser less than a year after launch
The company believes the defining aspect of its product will be its personality and capacity to engage with users on a humanlike level. The speaker will feature mechanical components that can move autonomously, giving it the impression of being alive rather than just an object that follows commands. It will also utilize personal data, such as emails, to gain a better understanding of its owner.
The ultimate goal is for the device to feel like a true companion and to act as a tangible representation of OpenAI’s ChatGPT. Nevertheless, the specific plans may evolve as development progresses and legal challenges are navigated. An OpenAI spokesperson chose not to comment.
The device’s communication capabilities will depend on an enhanced version of the ChatGPT Voice Mode — GPT-Live — which OpenAI launched this month. This new voice mode is tailored to mimic human conversation more closely, enabling it to listen and respond simultaneously, adjust more fluidly within dialogues, and swiftly process information.
While the new product may resemble a traditional speaker, OpenAI refers to it internally as a groundbreaking innovation — a computer specifically designed to enhance productivity for busy individuals. It will include a camera and various sensors to better understand its environment and user context, along with advanced AI models that surpass those found in standard smart speakers.
Additionally, a significant difference is that the device will feature a rechargeable battery, allowing for portability from one room to another throughout the day. Users can take it to the laundry room while folding clothes, to the kitchen for recipe help, and then into the living room or bedroom for music playback. Alternatively, it can remain stationed in a single room if desired.
Also Read: OpenAI launches ChatGPT Work, adding to competition for professional AI tools
In an effort to bolster its device division, OpenAI invested $6.5 billion last year in acquiring io Products, a startup co-founded by Jony Ive, a veteran in Apple design.
Ive’s design studio, LoveFrom, is also assisting in the creation of the new product line. The project involves many former Apple designers and engineers who were instrumental in developing products like the iPhone and Mac. OpenAI is optimistic that the LoveFrom team’s ability to make technology feel personal will set its inaugural hardware product apart.
In its lawsuit, Apple accused OpenAI of leveraging trade secrets to hasten the device’s development. OpenAI’s Chief Hardware Officer Tang Tan, a co-founder of io Products and former lead of iPhone product design, is alleged to be at the forefront of efforts to access confidential details about Apple’s upcoming products and engineering methodologies.
Sources indicate that although Tan was known for taking risks at Apple, he also has a reputation for assembling skilled development teams, maintaining strong supplier relationships, and collaborating effectively with creatives and designers. He is passionate about the technology he develops and adept at tackling complex engineering challenges, they said.
OpenAI has recruited over 400 additional personnel from Apple, according to the lawsuit. In addition to Ive and Tan, Apple’s former head of industrial design, Evans Hankey, is leading the development of the speaker and future OpenAI products. Recently, OpenAI also enlisted Paul Meade, a long-time senior executive at Apple, who oversaw the Vision Pro headset and the development of future smart glasses.
While Apple markets the HomePod and HomePod mini smart speakers, OpenAI does not consider them comparable to its upcoming speaker. The audio system and other components of the new speaker are considerably distinct from Apple’s designs, and OpenAI asserts that its initial product does not infringe on any trade secrets, as per insights from knowledgeable individuals.
In its legal case, Apple acknowledged the need for discovery to determine whether OpenAI is genuinely utilizing its technology. OpenAI, on the other hand, stated that it has “no interest in other companies’ trade secrets.” “While we take these allegations seriously, we’re unaware of any evidence that supports this complaint,” the company remarked.
The firm stated that it believes “in fair competition and the freedom of individuals to work where they choose” and is “dedicated to creating innovative technology that empowers people everywhere.”
Read More: OpenAI Unaware of ‘Any Evidence’ Showing Apple Lawsuit Has Merit
OpenAI’s hardware division is currently focused on approximately five different products but intends to launch the speaker first. They aim to unveil the device this year with a potential release in 2027, although this timeline could shift in light of ongoing legal proceedings. Apple is seeking an injunction against OpenAI’s hardware, which may postpone the sale of these devices.
Looking ahead, OpenAI hopes to develop a mobile AI device that could serve as an alternative to smartphones. It is also investigating wearable technology, including a pendant, and has expressed interest in home robotics.
Apple is also gearing up to introduce its own range of AI-driven home devices, exacerbating the competitive landscape between the two firms. Its first offering in this campaign, code-named J490, is a long-awaited smart-home control center.
This device will incorporate a new operating system, a square 7-inch display, videoconferencing capabilities, and facial recognition technology. The intention is for the speaker to deliver music, manage appliances, and showcase the upcoming Siri AI assistant, which will be part of the next iOS 27 operating system.
Apple is also designing a variant of the display with an enlarged screen mounted on a robotic arm, enabling it to adjust its position in response to user commands. The company is furthermore developing a smart-home security system.
