During a conversation at Emerson Collective’s 2025 Demo Day, OpenAI’s CEO Sam Altman and design legend Jony Ive have confirmed that a working prototype of a new AI-powered hardware device is underway.
The announcement marks a major step in OpenAI’s ambition to create a physical companion for its ChatGPT models. According to Altman and Ive, the device could arrive in under two years.
While many details remain secret, the two revealed that the prototype is “simple and beautiful and playful,” focusing on emotional appeal and ease of use. Altman said that past versions did not feel quite right. He recalled that an earlier prototype felt exciting, but lacked the kind of physical presence that made him want to pick it up.
With the current design, according to him, they finally “got there all of a sudden.” Ive echoed that sentiment, describing a product that feels intuitive when touched, one that feels almost naive in its simplicity yet sophisticated in execution, a device that invites interaction rather than imposing it.
The device is widely believed to be screen-free and pocketable. Reports suggest it could be about the size of a smartphone, yet not act like one. Court filings have ruled out it being an in-ear wearable. Instead it appears designed to sit comfortably on a desk or rest in a pocket, acting as a “third core device” beyond a computer or phone.
OpenAI acquired Ive’s hardware startup io earlier this year in a deal worth approximately $6.5 billion. This acquisition brought together Ive’s design team, many of them former Apple engineers, with OpenAI’s growing hardware ambitions. The takeover also signals OpenAI’s first real move into consumer hardware, not just software or AI services.
That said, the project is not without its challenges. According to several sources, OpenAI is facing technical barriers, especially around how to power the device’s intelligence efficiently and how to give the AI a personality that feels friendly without being intrusive. There are concerns about how to deliver enough compute to run ChatGPT-level models in a compact device.
Altman and Ive both express optimism that once the device is revealed publicly, people will feel an emotional connection. Altman hopes that users will see the product and say, “That’s it,” while Ive says he believes users will feel it in their hands, that the device will feel natural, not intimidating, and become a tool they use almost without thought.
You can watch the conversation in full below.
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Sounds like a big flop