OpenAI’s long-anticipated move into consumer hardware has taken concrete shape, and the immediate market reaction was sharp. The company is developing a portable, screenless smart speaker designed as an AI companion, Bloomberg reported, citing people familiar with the project. In late trading in New York, shares of audio specialist Sonos fell more than 10 per cent as investors absorbed the prospect of a deep-pocketed new entrant bringing generative AI directly into the home.

The device, still unannounced and under development, is conceived not as a conventional speaker but as a new category of home computer for the AI era. It will run an advanced version of ChatGPT’s voice mode, capable of simultaneous listening and speaking, to control smart appliances, play media, answer questions and handle messages. A camera and environmental sensors will allow it to read the room, while mechanical elements that move autonomously are intended to create a sense of aliveness. The system will draw on personal data such as emails to anticipate a user’s needs, learning habits over time. A rechargeable battery will make it easy to carry from room to room.

The hardware effort leans heavily on former Apple talent. OpenAI acquired the startup io Products, co-founded by ex-Apple design chief Jony Ive, for $6.5 billion in 2025, and has since hired more than 400 people from the iPhone maker, including former hardware engineering leads. That recruitment drive is now at the centre of a lawsuit Apple filed in a California court, alleging trade-secret theft and seeking to block the use of confidential information. OpenAI says it has seen no evidence the complaint has merit, but the legal fight could delay a product reveal pencilled in for 2026 and a commercial launch targeted for 2027. The dispute also sharpens the competitive pressure on Amazon, Google and Apple, whose own smart speakers now face a rival built from the ground up around a large language model.

The device is the first of roughly five physical products OpenAI is exploring, with a potential smartphone replacement further down the pipeline. The next factual milestone to watch is the progress of Apple’s lawsuit, which may determine whether the 2027 launch timetable holds, as well as any official unveiling by OpenAI, tentatively expected next year.