TL;DR

OpenAI is building a consumer AI device in collaboration with former Apple designer Jony Ive, featuring small models that run locally and custom chips designed for privacy-focused, always-on assistance. The company has already invested $6.5 billion in the project.

Beyond Phones: Continuous Context

According to Reuters, OpenAI’s vision centres on a device that provides “full context” - continuously sensing and understanding the user’s environment, unlike phones which operate in distinct on/off states. CEO Sam Altman reportedly wants a device that can “listen to your life, understand what you’re doing, handle the majority of follow-up tasks, and surface only what you actually need.”

A prototype is now circulating internally, with visible signals to indicate when the device is actively paying attention - addressing potential privacy concerns around always-on sensing.

The Shift to Small Models

Whilst OpenAI built its reputation on massive cloud-based models, the company is now focusing on compact “Mini” models that can run meaningful AI locally. Insiders say these local models will be critical for devices that continuously listen and watch, as most users won’t want their entire lives streamed to remote servers.

To make this possible, OpenAI is developing custom chips optimised for on-device inference - a departure from server chips like Nvidia’s, which are designed for parallel workloads across millions of users.

Looking Forward

The rollout will occur in phases: lighter, cloud-based devices arriving sooner, with more powerful privacy-sensitive devices following as on-device computing matures. OpenAI enters a heating market - Google recently announced AI glasses with Warby Parker for 2026, whilst Meta acquired Limitless, a startup building continuous recording wearables.

Source: Reuters