OpenAI and Qualcomm Advance AI Hardware Development; Smart Speaker and Chip Platform Unveiled

OpenAI is developing multiple AI-powered hardware devices, including a smart speaker with a camera, while Qualcomm has introduced a new chip platform for screenless wearables.

Reports indicate OpenAI's first product, produced in collaboration with former Apple designer Jony Ive, could launch as early as the second half of 2026, with mass production potentially beginning in 2027 or 2028.

Meanwhile, Qualcomm has announced the Snapdragon Wear Elite chip and Snapdragon Reality Elite platform, targeting a range of AI wearables.

OpenAI Hardware Development

OpenAI is developing its first hardware products, with a team of over 200 employees working on the project. The company's Chief Global Affairs Officer, Chris Lehane, stated in interviews that OpenAI plans to announce its first hardware product in the second half of 2026. General availability may extend into 2027, according to Lehane.

Industry analyst Ming-Chi Kuo reported that OpenAI is developing a smartphone in collaboration with MediaTek, Qualcomm, and Luxshare. Kuo projected component supplier finalization by the end of 2026 or Q1 2027, with mass production starting in 2028. Other reports from Asian publications and leakers indicate the device could be a pair of earbuds, codenamed "Sweet Pea," possibly featuring a custom 2-nanometer processor.

OpenAI acquired io Products, a startup founded by former Apple designer Jony Ive, in May 2025 for $6.5 billion. Ive and his design team from his firm LoveFrom are now working on OpenAI's hardware. Evans Hankey is leading industrial design, with Ive making final design decisions. Other former Apple employees involved include Tang Tan, Scott Cannon, and Adam Cue on software.

In November 2025, OpenAI CEO Sam Altman and Ive confirmed the existence of prototypes and stated that development towards building would commence within two years. Altman previously described a potential device as more "peaceful and calm" than current smartphones, suggesting a screen-free and pocketable form factor.

The first product anticipated for release is a smart speaker, projected for early 2027. Key features reported include:

• Integrated camera designed to gather visual information about users and their surroundings
• Facial recognition capability, similar to Apple's Face ID, for purchase authentication
• AI integration allowing users to ask questions and issue requests
• Internal presentations indicated the device could observe user behavior via video and suggest actions to help achieve goals
• Expected retail price between $200 and $300

The smart speaker is described as not a direct iPhone replacement, but a potential competitor to products like Amazon's Echo line.

Additional products under consideration include:

• Smart glasses: Anticipated for release in 2028
• Smart lamp: Prototypes have been created, but market release remains uncertain

Regarding manufacturing, reports indicate OpenAI has considered partnerships with China-based Luxshare and Taiwan's Foxconn. Analyst Ming-Chi Kuo projected that assembly and shipping could occur outside China, such as in Vietnam, to address geopolitical considerations. OpenAI aims to ship between 40 to 50 million units in the first year of sales, according to one report, while another cited Altman telling employees he and Ive intended to ship 100 million units.

Observations within the industry highlight that new screen-based consumer technology products face challenges when competing with established form factors like smartphones and smartwatches. Previous standalone AI hardware devices, such as the Humane AI Pin and Rabbit R1, did not achieve significant market penetration. Conversely, audio-based devices, including AI voice recorders and AI-enabled earbuds, show continued potential for expansion. Larger tech companies like Meta and Amazon are also increasing their presence in the wearables sector, with Meta's Ray-Ban glasses experiencing high demand.

Qualcomm's AI Wearable Platform

Qualcomm has introduced the Snapdragon Wear Elite chip, designed for screenless AI-powered wearable devices such as pins, pendants, and glasses. The chip is intended to run AI models and interact with other devices efficiently without excessive battery drain, even when regularly recording and communicating. Google, Motorola, and Samsung are among the companies expected to utilize this chip.

Qualcomm CEO Cristiano Amon stated that the company is working on over 40 AI wearable device designs, including jewelry, earbuds with cameras, pins, and watches.

Qualcomm also launched two additional offerings:

Snapdragon Reality Elite for mixed-reality glasses:

• GPU performance improvement up to 60%, CPU up to 30%, NPU up to 160% compared to previous XR platform
• Can run a 3-billion-parameter language model at 45 tokens per second
• Supports 4.4K per-eye resolution at 90 fps
• Designed for stand-alone video-see-through headsets and tethered optical-see-through glasses
• First devices include XREAL Project Aura and a device from Play for Dream

Scalable Turnkey AI-Ready Toolkit (START):

• Includes AR chip, software platform, companion apps, and a white-label program
• Offers three reference designs: audio+camera, monocular display, and binocular display
• Partners: Inspecs and O'Neill (TitanFlex)

According to Ziad Asghar, head of Qualcomm’s wearables and personal AI devices division, the need for a new chip arose from companies proposing novel gadget concepts. Growth in smart glasses shipments increased by 139% in the second half of 2025 compared to the previous year, according to Counterpoint Research.

Wearable devices are envisioned to perform tasks such as providing instant translations during conversations via smart glasses or earbuds. Interest has also been observed from the retail industry for using AI-powered cameras to track shopper behavior.

However, tech companies face challenges in gaining consumer acceptance. The AI Pin developed by Humane did not achieve widespread consumer adoption, leading to parts of its business being sold to HP.

The emergence of such devices raises significant privacy concerns, particularly regarding unconsented recording. Most devices, including Meta’s smart glasses and Amazon’s Bee bracelet, feature an LED light to indicate recording. Incidents of individuals being recorded without their knowledge and videos being shared on social media have been reported. Meta has previously stated that products should be used "in a safe, respectful manner."

Google is aware of the privacy issues that arose with its discontinued Google Glass smart glasses in 2013. Bjørn Kilburn, Google’s vice president and general manager of smartwatch software, stated the company's commitment to protecting user privacy, noting that this commitment sometimes results in slower development processes to thoroughly consider all potential use cases.

Several major tech companies are investing in AI-powered smart wearables:

• Amazon: Is pivoting its Alexa strategy toward higher-quality devices and acquired AI-focused company Bee
• Apple: Is expected to launch a 'HomePad' device, an AI-powered smart speaker with a camera, and is reportedly developing smart glasses and a pendant
• Google: Aims to release its first Gemini-powered smart speaker
• Meta: Continues to develop its Ray-Ban smart glasses
• Startups: Friend AI (pendant) and Plaud (pin) are also active in this space