OpenAI's Next Big Bet Won't Be on Wearables

OpenAI has successfully brought generative AI into the public spotlight. Now, it appears to be working on an entirely different type of AI-powered gadget.

According to a report by The Wall Street Journal, OpenAI CEO Sam Altman informed employees on Wednesday that the company’s next major product will not be a wearable device. Instead, it will be a compact, screenless device capable of fully understanding the user's surroundings. Small enough to sit on a desk or fit into a pocket, Altman described it as the "third core device" alongside the MacBook Pro and iPhone, as well as an "AI companion" designed to seamlessly integrate into everyday life.

This preview follows OpenAI’s announcement of acquiring io, a startup founded last year by former Apple designer Jony Ive, in a $65 billion equity deal. Ive will take on a key creative and design role within OpenAI.

Altman reportedly told employees that this acquisition could potentially add $1 trillion to the company’s market value by creating a new category of device—one distinct from handheld gadgets, wearables, or smart glasses, which have already been introduced by other companies.

Altman also reportedly emphasized to employees that confidentiality would be crucial to prevent competitors from copying the product before its release. However, his speech recording was leaked to The Wall Street Journal, raising questions about how much he can trust his team and how much information he is willing to share.