OpenAI’s ambitious plan to launch a revolutionary AI-powered gadget with Apple’s legendary designer Jony Ive is facing unexpected turbulence. According to a report from the Financial Times, the secretive collaboration—envisioned as a palm-sized, screenless device driven by artificial intelligence—is encountering both technical and design setbacks that could delay its initial launch.

The partnership between OpenAI and Ive’s design firm, LoveFrom, began earlier this year after OpenAI acquired the company in a deal reportedly worth $6.5 billion. The project aims to redefine human-machine interaction by creating a device that relies solely on audio and visual cues, eliminating the need for a traditional screen. However, insiders familiar with the matter suggest that turning this vision into reality has proven far more complex than anticipated.

A major stumbling block lies in computing power. OpenAI, which already faces immense demand for the servers running ChatGPT, reportedly lacks the infrastructure to make the device operate seamlessly in real time. One person close to the project told FT, “Amazon has the compute for an Alexa, so does Google [for its Home device], but OpenAI is struggling to get enough compute for ChatGPT, let alone an AI device—they need to fix that first.” This limitation poses a critical challenge, especially since the device is expected to process continuous streams of audio and visual data to function effectively.

Beyond the technical issues, the team is also grappling with a more human challenge—developing what insiders refer to as the assistant’s “personality.” The goal is to design an AI companion that feels like “a helpful friend” rather than an impersonal or overly intimate presence. Developers are reportedly experimenting with multiple conversational models to strike the ideal tone—approachable yet professional—while avoiding the pitfalls of past devices that veered into “weird AI companion” territory.

Privacy concerns further complicate the process. The device is expected to operate in an “always-on” state, continuously listening and observing its surroundings to learn from user interactions. This approach has sparked intense internal discussions about balancing privacy with functionality. According to one insider, fine-tuning the assistant’s responsiveness—ensuring it speaks only when needed and knows when to stop—has proven more difficult than expected.

Physically, the device is said to be about the size of a smartphone, featuring a camera, microphone, and speaker. It’s designed to blend naturally into a user’s daily environment, whether placed on a desk or carried around, offering an “aware but unobtrusive” experience.

While early reports hinted at a possible 2026 launch, the growing list of technical and philosophical hurdles has made the timeline increasingly uncertain. As OpenAI continues to refine both the emotional intelligence and computational backbone of its first consumer device, industry watchers say its success—or failure—could redefine the future of AI-driven hardware.