OpenAI Targets 2026 Launch for First AI Device Despite Apple Lawsuit

KUALA LUMPUR, JULY 2026 – OpenAI is reportedly maintaining its plan to introduce its first consumer artificial intelligence device in 2026 despite facing legal action from Apple over alleged misuse of confidential hardware information. However, OpenAI has not officially confirmed the product’s final design or commercial launch date.

According to a Bloomberg News report cited by Reuters, the company’s first hardware product is expected to be a portable, screen-free smart speaker designed to function as a more humanlike AI companion within the home. The device remains under development and could offer capabilities beyond those available on conventional smart speakers.

The reported device could control smart-home appliances, play media, answer questions, respond to messages and access the wider capabilities of ChatGPT. It is also expected to include a camera and additional sensors that would allow its AI system to understand the user’s surroundings and provide responses based on environmental context.

The project represents a major step in OpenAI’s effort to expand beyond software services and establish a direct presence in the consumer electronics market. Developing its own hardware could reduce the company’s reliance on smartphones, computers and operating systems controlled by other technology companies.

OpenAI strengthened its hardware ambitions in 2025 by bringing the io Products team into the company. The hardware startup was founded by former Apple design chief Jony Ive alongside Scott Cannon, Evans Hankey and Tang Tan. OpenAI said Ive and his independent design company, LoveFrom, would assume significant design and creative responsibilities across its products.

Reuters reported that OpenAI paid approximately US$6.5 billion to acquire io Products. The development effort reportedly includes several former Apple designers and engineers who previously worked on products such as the iPhone and Mac.

Apple filed its lawsuit on July 10 in the US District Court for the Northern District of California. The company accused OpenAI, io Products and two former Apple employees of systematically obtaining and exploiting confidential information to accelerate the development of competing consumer hardware. The allegations have not been proven in court.

The two former employees named in the complaint are Chang Liu, previously a senior system electrical engineer, and Tang Yew Tan, a former Apple vice-president involved in product design for the iPhone and Apple Watch. Apple alleged that confidential documents, manufacturing information and supplier details were improperly accessed or transferred.

Apple also claimed that more than 400 of its former employees currently work at OpenAI. Legal experts noted that hiring employees from a competitor is not itself illegal in California, although using confidential documents or protected trade secrets could create significant legal consequences.

OpenAI denied having any interest in obtaining another company’s trade secrets and said it remained focused on developing innovative technology. The company has not publicly announced that the legal dispute will delay its hardware programme.

The case could intensify competition between two companies that previously worked together. Apple introduced ChatGPT integration across Siri and its devices in 2024, but OpenAI’s expansion into hardware could transform the AI company from a software partner into a direct competitor in the consumer technology market.

Analysts have warned that the lawsuit could affect the timing of OpenAI’s hardware ambitions, particularly if the legal process restricts access to disputed information or disrupts product development. Nevertheless, reports indicate that work on the company’s first physical AI product is continuing.