OpenAI's Next Move: Not a Wearable Device - Report

OpenAI's Potential New Device

OpenAI significantly raised public awareness of generative AI. Currently, the company may be in the process of developing a fundamentally different type of AI-powered hardware.

A Screenless AI Companion

A recent report from the Wall Street Journal indicates that Sam Altman, CEO of OpenAI, informed employees on Wednesday about the company’s forthcoming major product. This product will not be a wearable technology.

Instead, it will be a small, screenless device possessing comprehensive awareness of its user’s environment. Altman characterized the device as an “AI companion” designed for seamless integration into everyday routines.

Its size will allow it to be conveniently placed on a desk or carried in a pocket. He further positioned it as a “third core device,” alongside established technologies like a MacBook Pro and an iPhone.

Acquisition of io and Jony Ive

This announcement followed OpenAI’s declaration of its intent to acquire io, a startup established last year. The founder of io is Jony Ive, a former designer at Apple.

The acquisition is valued at $6.5 billion in equity. Ive will assume a prominent role in creative design within OpenAI.

Potential Market Impact and Secrecy

Altman reportedly conveyed to employees that this acquisition has the potential to generate an additional $1 trillion in market value for the company.

This would be achieved through the creation of a novel device category, distinct from the handhelds, wearables, and smart glasses currently offered by competitors.

Altman also stressed the importance of maintaining strict confidentiality to prevent competitors from replicating the product prior to its official release.

Notably, a recording of his address was leaked to the Journal, prompting questions regarding the level of trust Altman places in his team and the extent of future disclosures.