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OpenAI and Jony Ive encounter technical hurdles in AI device development

October 07, 2025
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OpenAI, in partnership with former Apple designer Jony Ive, is facing significant technical challenges in creating a secretive new AI gadget aimed for launch next year. The palm-sized, screenless device is designed to act as a personal assistant using audio and visual inputs. Despite high ambitions, issues with software, personality, and computing power persist.

OpenAI acquired Jony Ive's company io for $6.5 billion in May, bringing in over 20 former Apple hardware employees and additional recruits from Meta and Apple. The San Francisco-based startup, now valued at $500 billion after surpassing Elon Musk's SpaceX as the world's most valuable private company this week, is pushing into hardware to justify its growth.

The device, roughly the size of a smartphone, features a camera, microphone, and speaker—possibly multiple cameras—and is intended to sit on a desk or be carried by users. It operates in an 'always on' mode, gathering data throughout the day to build the assistant's 'memory' without needing voice triggers. The goal is to surpass limited smart speakers like Amazon's Echo and Alexa by creating a more powerful, useful machine that responds to physical environment cues.

However, critical obstacles remain. People familiar with the plans note unresolved issues in software, infrastructure, and deciding the assistant's 'personality' to avoid being intrusive or overly talkative. 'The concept is that you should have a friend who’s a computer who isn’t your weird AI girlfriend... like Siri but better,' said one person briefed on the plans. OpenAI seeks 'ways for it to be accessible but not intrusive.' Another person close to the project added, 'Model personality is a hard thing to balance. It can’t be too sycophantic, not too direct, helpful, but doesn’t keep talking in a feedback loop.'

Computing power is a major delay factor. 'Compute is another huge factor for the delay,' said one person close to Ive. 'Amazon has the compute for an Alexa, so does Google [for its Home device], but OpenAI is struggling to get enough compute for ChatGPT, let alone an AI device—they need to fix that first.' Privacy concerns and budgeting for mass consumer use also loom.

The project enters a tough market, with products like the 'creepy' Friend AI pendant and Humane's scrapped AI pin—backed by OpenAI's Sam Altman—facing criticism. OpenAI is collaborating with Chinese manufacturers like Luxshare, though assembly might occur outside China. A person close to OpenAI described the troubles as normal product development steps. OpenAI and Ive's LoveFrom declined to comment.

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