OpenAI Reportedly Plans AI Speaker With Camera as First Hardware Bet
OpenAI plans to launch an AI-powered smart speaker with a camera and facial recognition as its first consumer hardware device.
OpenAI is preparing to enter the consumer hardware market with an AI-powered smart speaker featuring a camera and facial recognition, according to reports. The device, expected no earlier than 2027, could mark a strategic shift as the company seeks new revenue streams beyond its software-driven AI services.
The OpenAI Hardware Roadmap
Reporting based on information, The Verge says OpenAI’s first device will be a smart speaker equipped with a camera capable of recognizing objects on nearby tables and identifying conversations happening in the room. The product may include a facial recognition system comparable to Apple Face ID, allowing users to authenticate purchases directly through the device.
The speaker is expected to cost between $200 and $300 and is not scheduled for release before March 2027. The report also notes that OpenAI acquired former Apple designer Jony Ive’s hardware company in a deal valued at nearly $6.5 billion, signaling long-term ambitions in physical AI products.
Beyond the speaker, OpenAI is reportedly exploring smart glasses and a smart lamp, though mass production for glasses may not begin until 2028. Product plans remain in early stages, and it is unclear which prototypes will reach consumers.
Market Competition and Consumer Privacy Barriers
Mashable frames the upcoming device within OpenAI’s financial context, reporting that the company is burning cash rapidly and could face funding constraints by 2027 despite discussions of large-scale investment rounds. The AI speaker, designed under Jony Ive’s leadership, is positioned as a potential revenue driver if it launches before financial pressure intensifies.
According to the report, the speaker possibly could enable commerce directly through the device. However, questions remain about how that authentication system will function in practice.
Mashable also underscores competitive pressure. Apple Inc. is reportedly developing smart glasses and other AI-enabled hardware, while the broader AI device market could become more crowded by 2027. The report raises concerns about consumer privacy perceptions, particularly given OpenAI’s advertising-based components and existing skepticism toward always-on smart home devices.
Why This Launch Matters
The reported device signals OpenAI’s transition from a software-first AI provider to a vertically integrated hardware company. Entering the smart home space introduces new operational challenges, including supply chain management, consumer electronics distribution, and privacy compliance across multiple jurisdictions.
If the speaker succeeds, it could diversify OpenAI’s revenue model beyond API access and enterprise subscriptions. If it fails to gain traction, it may intensify scrutiny over the company’s capital strategy and long-term sustainability.
The move also reflects a broader industry shift as artificial intelligence companies explore embedded assistants that observe context through cameras and sensors rather than relying solely on text-based prompts.
What Comes Next for OpenAI’s Device Strategy
With a launch timeline extending into 2027 and additional products possibly arriving in 2028, OpenAI’s hardware ambitions remain early but significant. The company must balance innovation with consumer trust, particularly around facial recognition and in-home observation features.
As rivals accelerate their own AI device initiatives, the coming years will test whether OpenAI can translate its dominance in generative AI into a viable consumer hardware ecosystem.
