OpenAI generated significant excitement in the hardware space last year following its acquisition of io, a startup founded by former Apple design chief Jony Ive. Although the company remains secretive about the specifics, OpenAI’s Chief Global Affairs Officer Chris Lehane indicated during an Axios panel at Davos that the AI firm plans to unveil its first hardware product in the latter half of this year.

In November, CEO Sam Altman hinted that the potential device would feel more “peaceful and calm” than smartphones like the iPhone. Earlier reports have suggested OpenAI is interested in developing a screen-free, pocket-sized gadget. While official details are scarce, more recent leaks from Asian publications and insiders point to the possibility that OpenAI’s debut hardware could take the form of earbuds.

According to these reports, the device—codenamed “Sweet Pea”—would feature a distinctive design compared to existing earbuds. It is expected to run on a custom 2-nanometer processor, enabling it to handle AI tasks locally rather than relying on cloud-based processing.

A separate article from a major Taiwanese newspaper mentioned that OpenAI is exploring a manufacturing partnership with China-based Luxshare, though the company may ultimately choose to work with Taiwan’s Foxconn. The same report stated that OpenAI aims to ship between 40 and 50 million units in the first year of sales.

While ChatGPT already attracts close to a billion weekly users, OpenAI currently depends on third-party devices and platforms for distribution. Launching its own hardware could allow the company to exert greater control over the development and rollout of its AI assistant, while also introducing exclusive, purpose-built features.

Nevertheless, displacing established earbuds like AirPods in users’ daily routines will be difficult without deep integration with operating systems. So far, no AI-focused hardware has achieved breakout success. Last year, Humane Pin was sold to HP, Rabbit has struggled to maintain momentum after its initial 2024 hype, and the Friend AI companion necklace faced swift criticism over its marketing approach.

Despite these challenges, major tech firms are increasingly investing in wearables. Meta’s Ray-Ban smart glasses continue to expand in functionality and popularity, with demand reportedly outstripping supply. Additionally, Amazon recently acquired Bee, an AI meeting recorder that could also serve as a personal companion device.