Article Summary
OpenAI CEO Sam Altman has announced plans to lead the company in shipping a new AI device by the end of 2026, aiming for sales of 100 million devices. The new AI device, which will not have a screen or be a phone, is targeting to become as integral as a smartphone and will be capable of being fully aware of a user’s surroundings and life. However, AI devices have struggled to gain traction, with Humane and Rabbit Inc’s offerings failing to catch on due to limitations in software and hardware. OpenAI, which does not expect to generate a profit until 2029, is also burning through cash.
What This Means for You
- Be aware of the ambitious plans of OpenAI to release a new AI device by the end of 2026, with a goal of selling 100 million devices.
- Understand that the new AI device will not have a screen, will not be a phone, and will aim to be as integral to daily life as a smartphone.
- Recognize the challenges faced by AI devices, including the limitations in software and hardware, and the deep pockets needed to compete with smartphone companies.
- Consider the potential impact on OpenAI’s financial situation, as they aim to generate a profit by 2029 and are currently burning through cash.
- Stay informed on the developments in AI technology and how they may affect your daily life and purchasing decisions.
Original Post
Investing.com– OpenAI CEO Sam Altman told employees that he plans to lead the company in shipping a planned AI device by at least end-2026, the Wall Street Journal reported on Wednesday.
Altman told employees at the AI startup that he was targeting sales of 100 million devices, and that OpenAI was seeking to create a new class of devices as integral as a smartphone, the WSJ report said, citing a recording of a meeting between Altman and OpenAI employees.
Altman’s comments come just after OpenAI bought a company led by former Apple (NASDAQ:AAPL) designer Jony Ive for $6.5 billion earlier this week. Altman said that the deal had the potential to add $1 trillion in value to OpenAI, the WSJ reported.
Altman and Ive were reportedly aiming to create a third core device for everyday use, after a smartphone and a personal computer. The AI device will reportedly feature no screens, will not be a phone, and is not a wearable.
Altman has claimed that the device will be able to rest in a user’s pocket or desk, and will be capable of being fully aware of a user’s surroundings and life.
AI devices have so far struggled to gain traction, especially when competing with smartphones sold by companies with far deeper pockets. Offerings from Humane– a start-up that Altman had invested in– and from Rabbit Inc– largely failed to catch on, due to limitations in software and hardware.
OpenAI is also burning through cash, and does not expect to generate a profit until 2029, prior reports showed.
Still, building a device will likely be the only way OpenAI can reach consumers directly with its software offerings, which currently either run on smartphones or on internet browsers. The acquisition of Ive’s company is aimed at this particular goal.
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