OpenAI’s high-profile collaboration with former Apple design chief Jony Ive is reportedly encountering major technical setbacks that could delay the launch of their much-anticipated AI-powered device, originally slated for 2026. The project, which followed OpenAI’s $6.5 billion acquisition of Ive’s design studio io earlier this year, is said to be struggling with core infrastructure and software challenges, according to multiple sources familiar with the matter.
Compute Power Bottleneck
The most pressing issue appears to be computing power. Sources told the Financial Times that OpenAI is grappling with severe resource shortages, saying, “They’re struggling to get enough compute for ChatGPT, let alone an AI device.” The screenless, palm-sized gadget is designed to be constantly active, gathering sensory data to retain context from past interactions—an approach that demands vast processing capacity. Unlike Amazon or Google, OpenAI lacks the extensive cloud infrastructure needed to support millions of continuously operating devices.
Software and Personality Challenges
Developers are also facing difficulties refining the AI assistant’s personality and conversational tone. One insider described “model personality” as a major design hurdle, noting the challenge of creating an assistant that is “helpful without being overly talkative, sycophantic, or robotic.” The vision is reportedly to craft “a friendly, human-like companion-something like Siri, but more natural.”
Legal and Manufacturing Setbacks
Legal complications have further slowed progress. A trademark dispute with audio startup Iyo forced OpenAI to temporarily remove the “io” branding from its website. Manufacturing arrangements with Luxshare and other suppliers are advancing, though final assembly may occur outside China.
As OpenAI CEO Sam Altman and Ive prepare for a DevDay 2025 fireside chat on “the craft of building in the age of AI,” industry observers say the company faces mounting pressure to deliver tangible progress before rivals like Apple and Google extend their lead in consumer AI hardware.
OpenAI’s high-profile collaboration with former Apple design chief Jony Ive is reportedly encountering major technical setbacks that could delay the launch of their much-anticipated AI-powered device, originally slated for 2026. The project, which followed OpenAI’s $6.5 billion acquisition of Ive’s design studio io earlier this year, is said to be struggling with core infrastructure and software challenges, according to multiple sources familiar with the matter.
Compute Power Bottleneck
The most pressing issue appears to be computing power. Sources told the Financial Times that OpenAI is grappling with severe resource shortages, saying, “They’re struggling to get enough compute for ChatGPT, let alone an AI device.” The screenless, palm-sized gadget is designed to be constantly active, gathering sensory data to retain context from past interactions- an approach that demands vast processing capacity. Unlike Amazon or Google, OpenAI lacks the extensive cloud infrastructure needed to support millions of continuously operating devices.
Software and Personality Challenges
Developers are also facing difficulties refining the AI assistant’s personality and conversational tone. One insider described “model personality” as a major design hurdle, noting the challenge of creating an assistant that is “helpful without being overly talkative, sycophantic, or robotic.” The vision is reportedly to craft “a friendly, human-like companion—something like Siri, but more natural.”
Legal and Manufacturing Setbacks
Legal complications have further slowed progress. A trademark dispute with audio startup Iyo forced OpenAI to temporarily remove the “io” branding from its website. Manufacturing arrangements with Luxshare and other suppliers are advancing, though final assembly may occur outside China.
As OpenAI CEO Sam Altman and Ive prepare for a DevDay 2025 fireside chat on “the craft of building in the age of AI,” industry observers say the company faces mounting pressure to deliver tangible progress before rivals like Apple and Google extend their lead in consumer AI hardware.
