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OpenAI is making a strategic entry into the consumer hardware market, with plans to release a range of AI-powered devices. According to industry reports, this new product lineup will include a smart speaker, smart glasses, and a smart lamp. This move marks a major expansion for the company, which has primarily been known for its software-based AI models, such as ChatGPT, as it seeks to create physical products that integrate its artificial intelligence technology directly into users’ daily lives.
The company has mobilised a substantial team of over 200 staff to work on this ambitious project. The first product expected to reach consumers is an AI-powered smart speaker, which is reportedly slated to retail for between $200 and $300. However, consumers will have to wait some time for its release, as shipments are not anticipated to begin before February 2027. The device is designed to feature a built-in camera, enabling it to gather information about its users and their environment, thereby delivering more interactive and personalised AI responses.
Hardware Plans Include Smart Glasses, Lamps, Wearable Pins, etc
OpenAI’s hardware roadmap extends to other innovative concepts. Work has already begun on a pair of smart glasses, though mass production for this product is not expected until 2028. Additionally, the company is exploring other form factors, including a smart lamp and an AI-powered wearable pin. These diverse concepts illustrate OpenAI’s ambition to embed its technology into a variety of everyday objects and interactions.
The company’s official entry into the hardware space was solidified in 2025 with the $6.5 billion acquisition of io Products, a startup founded by former longtime Apple designer Jony Ive. This acquisition was a key strategic move, bringing in deep hardware expertise. Ive’s renowned design studio is now actively collaborating with OpenAI on the development of the new device lineup, signalling a strong commitment to blending advanced AI with sophisticated, user-friendly industrial design.
OpenAI aims to achieve complete control over the user experience of its AI systems. This vertical integration strategy allows the company to seamlessly combine its software with device design, creating a cohesive and optimised ecosystem. This direct-to-consumer approach positions OpenAI as a formidable competitor against other tech giants already active in the space, such as Meta with its AI-enabled Ray-Ban smart glasses, Apple’s reported smart glasses project, and Google’s ongoing experiments with augmented reality hardware.
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Meta’s Facial Recognition Glasses Spark Major Privacy Backlash
Industry Analysts Raise Caution over Privacy Concerns
Despite the innovative potential, industry analysts have raised cautions regarding the new products. The inclusion of cameras and various sensors in devices like the smart speaker and glasses is likely to attract regulatory scrutiny over privacy concerns. This is particularly relevant in regions with strict data protection laws, such as the European Union, where the collection of data from users’ homes and surroundings will be closely examined.
Nevertheless, the immediate focus for OpenAI remains the launch of its first smart speaker in 2027. This product represents the company’s bold and concrete step from being a software-centric entity into the competitive world of consumer AI hardware. The success of this initial device will be crucial in setting the stage for the subsequent rollout of its other planned products.
Overall, this hardware initiative underscores a strategic effort by OpenAI to diversify its revenue streams and deepen its engagement with end-users. OpenAI is moving beyond just providing a service but is embedding itself into the physical world, creating new opportunities and establishing a direct presence in the rapidly evolving and competitive market for AI-powered consumer electronics. With only 10 months away, 2027 promises to be a big year for hardware and physical AI.
