OpenAI has shifted gears into consumer hardware. Industry sources say the company will ship its inaugural smart speaker next year. Production ramps up soon after the $6.5 billion acquisition of io Products last year.

The speaker leads the lineup. A built-in camera will scan users’ environments. That setup promises sharper, more tailored AI interactions. Shipments start no earlier than February 2027, sources close to the matter told Brand Spur Tech News.

Over 200 employees now focus on hardware. They report to Jony Ive’s design studio. Ive, the ex-Apple designer who founded io Products, joined forces with OpenAI through the 2025 deal. His team shapes the speaker, glasses, lamp and a wearable pin.

Smart glasses come later. Mass production won’t hit until 2028 at the earliest. The lamp and pin remain in early concepts. OpenAI wants tight control over its AI. Building devices lets software mesh perfectly with screens, sensors and speakers.

Competition heats up fast. Meta Platforms already sells AI-boosted Ray-Ban glasses. Apple pursues its own smart glasses. Google tests augmented reality gear. OpenAI’s push aims straight at those giants.

Privacy risks loom large. Cameras and sensors invite questions. Regulators in the European Union enforce tough data rules. Analysts expect pushback there and beyond. Still, the 2027 speaker stands as OpenAI’s top priority.

Sam Altman, OpenAI’s CEO, has long eyed hardware. The io Products buy locked in Ive’s expertise. That move followed years of software dominance with ChatGPT and other models. Hardware expands revenue. It pulls users deeper into OpenAI’s world.

Sources stress timelines could slip. Supply chains and testing often delay launches. OpenAI declined comment on the reports. The strategy fits a broader AI race. Rivals bundle smarts into watches, homes and heads-up displays. OpenAI now joins them.

Early buzz centers on the speaker’s price point. At $200 to $300, it undercuts premium rivals. The camera raises eyebrows. It could feed real-time data to models like GPT-5 or beyond. Personalization might leap forward. Or spark backlash.

I’ve’s touch promises sleek design. His Apple days brought iMacs, iPods and iPhones. OpenAI hardware could carry that polish. The lamp might glow with AI cues. Glasses could overlay info. The pin? A subtle always-on assistant.

Wall Street watches closely. OpenAI’s valuation soars past $150 billion. Hardware success could add billions more. Failure risks brand damage in a crowded field. For now, 2027 marks the starting gun.