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OpenAI and former Apple (NASDAQ:AAPL) design chief Jony Ive are reportedly encountering significant technical obstacles in their efforts to create a next-generation artificial intelligence hardware device. According to a recent Financial Times report, the secretive project aims for a 2026 launch but continues to face hurdles in both software performance and user interaction design.
In May, OpenAI—led by CEO Sam Altman—acquired Ive’s design firm LoveFrom’s subsidiary, io, for approximately $6.5 billion. Since then, the collaboration has focused on developing a palm-sized AI gadget that operates without a screen. Instead, it will rely on advanced cameras, microphones, and sensors to interpret environmental cues and engage naturally with users. The device represents a bold step toward blending AI with everyday life, moving beyond traditional smartphones and displays.
However, OpenAI and Ive’s team are reportedly struggling with several core challenges. These include privacy concerns, the massive computing power required to run OpenAI’s large language models on a portable device, and defining the product’s “personality”—how it should respond, behave, and emotionally connect with users. Crafting this unique AI identity is proving to be a complex task for designers and engineers alike.
Despite the setbacks, OpenAI continues to expand its hardware division, recruiting top talent from Apple and Meta to strengthen its design and engineering capabilities. The company is also reportedly partnering with Chinese contract manufacturers to accelerate production and testing phases.
As OpenAI and Ive push toward their vision of an intuitive, screen-free AI companion, the project could mark a turning point in human-AI interaction—if they can overcome the current technical and design challenges.
