Kuo: OpenAI and Jony Ive’s “io” AI Device to Launch in 2027

by · The Mac Observer

OpenAI and former Apple design chief Jony Ive plan to begin mass production of their first consumer hardware device in 2027. The device, part of a new initiative under the company “io,” will not resemble a smartphone or smart glasses. The device adopts a compact iPod Shuffle–like design and hangs around the neck like a necklace.

Kuo reports that the device, still in prototype, is slightly larger than the now-discontinued Humane AI Pin. It will include microphones and cameras for contextual awareness, but no screen. The hardware will rely on paired smartphones and computers for processing and display.

OpenAI plans to start mass production in 2027 and will assemble and ship the product outside China to reduce geopolitical risk. Vietnam is the likely production hub. Kuo noted that the prototype’s design may evolve before full-scale production.

An AI Necklace, Not a Phone

This wearable AI device marks a departure from conventional consumer electronics. Kuo says the design aims to feel elegant and unobtrusive, comparing it to Apple’s minimalist iPod Shuffle. Instead of a built-in interface, the device will integrate with existing user tech, acting as a context-aware input and output channel for OpenAI’s models.

OpenAI and Ive reportedly plan to ship 100 million units, signaling an aggressive push into consumer hardware. The scale of production and investment, reflected in OpenAI’s $6.5 billion all-stock acquisition of io, underscores the company’s long-term hardware ambitions.

While the final specifications may evolve, the direction is clear: small, wearable AI embedded in daily life. This aligns with a broader trend toward “physical AI,” where ambient intelligence works without screens or traditional UI.

Strategic Timing and Market Pressure

Kuo suggests OpenAI announced its partnership with Ive now to shift attention away from Google’s recent I/O developer conference, which highlighted its AI integration. OpenAI is using the hardware reveal to shift the AI narrative and assert leadership beyond software.

As reported by The Wall Street Journal and confirmed by Kuo on X, the device is being developed by a team of ex-Apple veterans under the new “io” division, recently acquired by OpenAI in a $6.5 billion all-stock deal. The product is the first in a series expected from the hardware team, based in San Francisco.

While OpenAI CEO Sam Altman called the product “the coolest piece of technology that the world will have ever seen,” the market will determine whether the company can turn vision into mass adoption.

For now, the target remains fixed: a 2027 launch of a necklace-sized AI device that redefines how users interact with artificial intelligence.