OpenAI commences pivot to AI hardware

By Simon Forrest, Principal Analyst, Head of Core Technology, Futuresource Consulting

From large language models to large AI hearable vendor?

OpenAI is expected to introduce its first proprietary hardware product in the second half of 2026, according to comments made this week by Chief Global Affairs Officer, Chris Lehane.  He described the forthcoming AI device as one of OpenAI’s most anticipated initiatives for the year but declined to provide details on form factor or functionality.  He specifically avoided confirming whether the product would resemble a wearable pin, an ear-worn device, or another category altogether; however, supply chain leaks suggest a screenless, audio-focused wearable product, codenamed “Sweetpea”.

Reports suggest that Foxconn has been selected as the contract manufacturer for the product, with first-year shipment volumes targeting between 40 and 50 million units.  While OpenAI has not confirmed this, if it indeed is true, those volumes imply a mass-market strategy rather than a limited pilot release.

Since acquiring the startup founded by former Apple design chief Jony Ive in May, CEO Sam Altman has repeatedly alluded to a future hardware product, emphasising its design quality and differentiation while providing limited concrete information.

Beyond hardware, OpenAI’s management has signalled a continued strategic focus on applied AI use cases.  Throughout 2026, the company intends to prioritise practical deployments in healthcare, scientific research, and enterprise applications – all areas where improvements in model performance are expected to translate directly into measurable outcomes and near-term commercial opportunities.

Futuresource perspective

Futuresource consider that a product akin to a Smart Hearable device, perhaps something like a hearing aid, would make sense here, given the benefits of interacting with a next-generation large language model via voice.  Nevertheless, any product targeting the sector would need to unseat large incumbents in True Wireless by offering some truly unique features whilst also dovetailing neatly into the Apple and Android ecosystems.  The other option is to build a fully untethered AI Hearable, which brings the added complexity of packing a high performance SoC, sensing and wireless communications into such a small form factor, such that it could be fully decoupled from the smartphone and run AI language models locally on the device itself.

OpenAI’s large and engaged user base offers a potential advantage in driving early adoption of first-party hardware, although this is not necessarily guaranteed.  The failure of other “AI first” products, including the Humane Pin and Rabbit R1, will serve as warning signs here.

Meanwhile, Apple are rumoured to be examining the opportunity for an AI Wearable.  Apple’s proposed device is characterised as being comparable to an AirTag: a compact, disc-shaped form factor featuring an aluminium-and-glass enclosure that can be attached to clothing.  The device is expected to incorporate both a standard and a wide-angle camera for photo and video capture.  Additional components may include a tactile input button, an integrated speaker, location tracking, and a rear-mounted charging interface.

If these leaks turn out to be true, then the market for “AI Assistant” products across the Hearable and Wearable segments is likely to emerge in early 2027.  Success is not guaranteed: edge AI performance will be a governing factor here, offering potential for new dedicated silicon chips featuring larger NPUs and smaller GPUs, scaled appropriately for handling screenless AI tasks.  This is an aspect that Futuresource are closely monitoring as part of our AI Hardware Tracking Service.

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