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Wednesday, 21 October 2026
Markets

OpenAI Partners with Apple Supplier Luxshare to Develop AI Device

By Katherine (Kay)2 min read

WASHINGTON: OpenAI has signed a deal with Luxshare (002475.SZ), a key assembler for Apple (AAPL.O), to produce a new consumer device, according to a report by The Information citing people familiar with the matter.

The prototype under development is expected to be pocket-sized and context-aware, designed to work seamlessly with OpenAI’s artificial intelligence models. Analysts say such a device could provide an alternative to smartphones, potentially disrupting the dominance of Apple and other consumer electronics makers.

Neither OpenAI nor Luxshare immediately responded to Reuters’ requests for comment.

Earlier this year, OpenAI acquired hardware startup io Products, founded by former Apple designer Jony Ive, in a $6.5 billion deal, highlighting its ambition to expand beyond software into consumer hardware.

Luxshare, which manufactures Apple’s iPhones and AirPods, would bring large-scale production capabilities to the project. OpenAI has also approached China-based Goertek, another Apple supplier that assembles AirPods, HomePods and Apple Watches, to provide speaker modules and components for the planned device, according to The Information.

The initiative marks one of the boldest moves yet by an AI company to build a dedicated “AI-native” device designed from the ground up to integrate with AI models, rather than relying on smartphones or PCs.

Industry observers say the effort could open new markets and potentially give OpenAI a foothold in the consumer electronics arena, currently dominated by Apple, Samsung, and Alphabet’s Google (GOOGL.O).

Author

  • Kay like to explores the intersection of money, power, and the curious humans behind them. With a flair for storytelling and a soft spot for market drama, she brings a fresh and sharp voice to Southeast Asia’s business scene.
    Her work blends analysis with narrative, turning headlines into human stories that cut through the noise. Whether unpacking boardroom maneuvers, policy shifts, or the personalities shaping regional markets, Kay offers readers a perspective that is both insightful and relatable — always with a touch of wit.