OpenAI and Jony Ive are reportedly facing challenges in developing their highly confidential new AI device.

The San Francisco-based AI company, run by Sam Altman, bought Jony Ive AI project firm LoveFrom io for $6.5 billion in May. But the two have remained tight-lipped about any details of new AI gadget announcement.

However, both have made clear their intention to build a new kind of AI hardware development: a small, screenless gadget that is able to listen to and understand its users by processing both audio and visual input from its environment.

LoveFrom io has assembled one of the best hardware design teams in the world, credited with products like Apple’s iMac, iPod and iPhone. But the team is still struggling to get software to work as expected and with developing the large-scale infrastructure needed to power the new device, people familiar with the matter said.

Among the issues they are grappling with, according to the people, are defining the “personality” of the AI assistant that is being created; privacy considerations around the use of such a device; and the amount of computing power needed to run OpenAI’s models in a consumer product. “Computing power is one of the biggest obstacles,” one person close to Ive said. “Amazon and Google already have the existing infrastructure for Alexa and Google Home.”

One person close to OpenAI innovation 2025, on the other hand, said that these sorts of issues are very much to be expected in secretive AI device 2025 development cycle and were not particularly concerning. Insiders also said that the device itself was expected to be about the size of a smartphone, complete with a microphone, speaker and a camera to facilitate smooth communications, and that it may even have multiple cameras.

OpenAI’s collaboration with Ive comes as the AI giant is having its biggest week ever. On Wednesday, OpenAI overtook Elon Musk’s SpaceX to become the world’s most valuable private company after a deal that valued it at $500 billion.