OpenAI is accelerating the development of its first consumer hardware product.

According to a report, the smart speaker, shaped like a donut and roughly the size of a hockey puck, is slated for release in 2027 with a price tag between $300 and $400. The company sees this device as a crucial first step into the hardware market, with a long-term goal of eventually replacing the smartphone.

The device, designed by Jony Ive's LoveFrom studio, features high-end metal materials, built-in cameras, and sensors. It is capable of learning user habits and engaging in personalized interactions. However, Apple is attempting to legally block this progress. Apple has filed a lawsuit against OpenAI for trade secret infringement and has applied for a court injunction this week. If approved, the injunction could directly disrupt the product's launch. OpenAI denies any wrongdoing and has filed a motion to dismiss Apple's lawsuit.

Apple's Legal Challenge Poses a Potential Risk

In its complaint, Apple alleges that OpenAI directed a long-time Apple supplier to develop a metal polishing process similar to Apple's for its upcoming product, leading the supplier to believe it had Apple's authorization. OpenAI described the allegations as "vague and overly broad," denying any infringement. In a motion to dismiss filed this week, the company stated that it is building something "new and entirely different from any Apple product."

OpenAI's lawyer, Patrick Curran, also sent a strongly worded letter to Apple's legal representatives, calling the lawsuit an "attack on ordinary business practices" and blaming the situation on Apple's own internal procedures and decisions. It remains unclear whether Apple's allegations specifically target the ring-shaped device, another product, or a design concept that was abandoned. According to the report, OpenAI launched an internal investigation after the lawsuit was filed and concluded that the product did not use or infringe upon Apple's trade secrets. Despite the legal pressure, OpenAI is continuing to push forward with the device's development at full speed.

Donut Design Sets It Apart from Current Market Products

The device is ring-shaped, roughly the size of a hockey puck, making it easy to carry with one hand and move around the home. Unlike traditional smart speakers that remain stationary, this device features moving mechanical parts to display its response status, giving it a more "lively" feel during interaction. It is equipped with a speaker grille, microphone, camera system, and environmental sensors, along with an indicator light to show when it is listening. The device is battery-powered and can be used in various scenarios, such as handheld, on a bedside table, or on a kitchen counter. OpenAI says the device's AI capabilities will surpass the current ChatGPT voice mode on its smartphone app, allowing it to learn about users over time for a more personalized conversational experience.

Jony Ive Leads Design, Pricing Above Mainstream Smart Speakers

The device is a joint development between Jony Ive and OpenAI. Ive, known for his minimalist and high-end industrial design, previously led the design of the iPhone, iPad, iPod, and Apple Watch. Last year, OpenAI acquired a device startup co-founded by Ive, bringing its team on board. OpenAI plans to price the device between $300 and $400, which is higher than most smart speakers on the market but lower than the standard version of an iPhone. OpenAI describes it as an "AI-focused computer," aiming to differentiate it visually and functionally from the Amazon Echo and Google Nest product lines. In the long run, OpenAI plans to launch a full range of hardware products, with the smart speaker as the entry point into the market. Currently, other types of always-on AI wearables, like smart glasses, face more scrutiny over privacy issues, making the smart speaker a lower-risk entry point.