OpenAI Targets 2H Launch for First Hardware Device, Eyes Tens of Millions of Units

New updates have been reported about OpenAI.

OpenAI is preparing to enter the consumer hardware market in the second half of this year, with its first dedicated device set to move the company beyond reliance on third-party platforms for ChatGPT distribution. According to comments by OpenAI Chief Global Affairs Officer Chris Lehane at an Axios panel in Davos, the company remains on schedule for the launch, following its acquisition of Jony Ive’s design startup last year. While OpenAI has not disclosed specifications, prior remarks from CEO Sam Altman indicate the product is intended to be more “peaceful and calm” than smartphones, with earlier reporting pointing to a screen-free, pocketable form factor optimized around conversational AI. Recent leaks from Asian sources now suggest the initial product may be a pair of uniquely designed AI-centric earbuds, reportedly codenamed “Sweet Pea,” potentially powered by a custom 2-nanometer chip capable of performing AI tasks on-device rather than in the cloud.

Manufacturing strategy and scale expectations underscore the potential financial and strategic significance of this move. OpenAI is reportedly evaluating production partners, including China-based Luxshare and Taiwan-based Foxconn, with indications it may ultimately favor Foxconn for large-scale manufacturing. Sources suggest an aggressive first-year shipment target of 40–50 million units, which, if even partially realized, would position the device as a major new revenue and distribution channel for OpenAI’s AI assistant, complementing its nearly one billion weekly ChatGPT users. By controlling both the software and hardware layer, OpenAI could introduce exclusive capabilities and tightly integrated user experiences that are difficult to replicate on third-party devices. However, success will depend on deep integration with dominant mobile operating systems and the company’s ability to avoid the missteps seen in earlier AI hardware experiments, in a market where no AI-first device has yet achieved breakout adoption despite growing activity from large tech players in wearables and AI-enhanced accessories.