OpenAI’s much-anticipated AI device, designed in collaboration with Jony Ive’s startup io, may face delays as the companies grapple with technical and privacy-related challenges. The device, which aims to redefine human-AI interaction, is reportedly being held back by issues surrounding its “always-listening” functionality and data protection concerns.
The project, first revealed after OpenAI’s acquisition of io in May 2025, was expected to deliver a screenless, palm-sized gadget capable of understanding and responding to audio and visual cues in real time. The innovation was hailed as a step toward a “new generation of AI-powered devices,” envisioned by OpenAI CEO Sam Altman and Apple’s former chief designer Jony Ive.
However, insiders told the Financial Times that the collaboration has hit a standstill due to unresolved questions about AI personality, privacy management, and user boundaries.
A source close to the development noted,
“The device is always on, but the challenge is determining when it should listen and when it should stay silent.”
Privacy experts warn that such features could raise serious data security concerns, especially as the device wouldn’t rely on traditional wake words like “Hey Siri” or “Alexa.” Similar AI gadgets, such as Humane AI Pin and Rabbit R1, failed to gain traction due to comparable privacy and usability issues.
If resolved, OpenAI and Ive’s creation could become a defining innovation in personal AI hardware, but for now, its release once rumored for 2026 may be postponed until these challenges are addressed