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Investing.com -- Shares of Apple Inc (NASDAQ:AAPL) continued to dip Thursday following OpenAI’s $6.5 billion acquisition of io Products, a design startup led by former Apple designer Jony Ive. The move, seen by many as a potential long-term challenge to the iPhone, marks OpenAI’s push into AI-enabled consumer hardware that could rival smartphones.
Analyst Ming-Chi Kuo of TF International Securities offered early insight into the new device, describing it as compact and screenless, with cameras and microphones focused on environmental awareness. “Mass production is expected to start in 2027… with assembly and shipping likely occurring in Vietnam to mitigate geopolitical risk,” Kuo wrote Thursday in a report based on his industry research.
The prototype is reportedly larger than Humane’s AI Pin but retains the minimalist appeal of an iPod Shuffle. It’s designed to be worn around the neck and is expected to connect to smartphones and PCs for compute and display, representing a new model of hybrid device.
Kuo interpreted the acquisition’s timing as a strategic move by OpenAI to divert attention from Google’s (NASDAQ:GOOGL) recent I/O developer conference. “Google’s ecosystem and AI integration pose a challenge OpenAI currently struggles to address,” he noted, suggesting the deal’s announcement was partly about narrative control within the industry.
WSJ earlier reported that Sam Altman, OpenAI’s CEO, told employees this week that he aims to sell 100 million devices and sees the hardware as a new category, potentially as foundational as the smartphone or PC.
Whether OpenAI can break through where other AI hardware startups have faltered remains uncertain, especially amid limited device functionality and market skepticism. But the acquisition signals how leading AI companies are beginning to encroach on territory long dominated by incumbents like Apple and Google, reshaping industry expectations about what post-smartphone devices might look like.