OpenAI Working on Three Hardware Devices — First Is a Smart Pen

OpenAI is reportedly preparing to enter the consumer hardware market with not one, but three devices, according to fresh supply-chain chatter.

The most eye-catching of these is said to be a smart pen, marking an unexpected direction for the artificial intelligence leader as it looks beyond software and cloud-based services.

The project traces back to OpenAI's quiet acquisition of io, a hardware-focused startup founded by legendary designer Jony Ive.

While the deal was announced months ago, details about what io had been building remained opaque. Now, a new rumour suggests the first product to emerge from the partnership will be a pen infused with AI capabilities.

If accurate, the move underlines OpenAI's ambition to define a new category of 'third-core' devices designed to complement laptops and smartphones.

Yet history is littered with failed attempts to introduce must-have companion gadgets, raising questions about whether even OpenAI's technological clout will be enough to change user habits.

A Contextually Aware AI Pen

According to GSM Arena, the pen under development was internally described as 'contextually aware,' hinting at an ability to understand its environment, user intent, or the content being written.

With io now fully integrated into OpenAI, industry observers assume the device would leverage advanced AI models to go far beyond digital note-taking.

Exactly how the pen will function remains unclear. It could potentially transcribe handwriting in real time, summarise notes, recognise diagrams, or interact with other devices and services.

What is more certain is that the pen is only the beginning. OpenAI is said to be working on two additional hardware concepts, one of which has been described as a 'to-go' audio device, which could go hand-in-hand with ChatGPT. This suggests a broader ecosystem strategy rather than a one-off experiment.

Manufacturing Shifts And Supply Chain Strategy

Manufacturing plans for the pen also appear to be in flux. Early discussions reportedly centred on Luxshare, formally known as Luxshare, but that partnership now seems unlikely to proceed. Sources indicate OpenAI is keen to avoid having its hardware made in China.

Instead, attention has turned to Foxconn, with Vietnam emerging as the most likely production base. It is also said to be a slight chance that manufacturing could take place in the United States at a Foxconn facility, though this would represent a more complex and potentially costly route.

A trusted tech blogger, writing under the name Smart Pikachu, claims the internal codename for the hardware effort is 'Gumdrop' and says there are currently three projects in vendor evaluation. 'OpenAI does not want device made in China,' the blogger wrote, adding that Vietnam is the current target location.

The $6.5 Billion Deal That Wasn't

io's integration into OpenAI came with an eye-catching headline valuation of $6.5 billion (£5.1 billion). In practice, however, no cash changed hands, as the transaction was structured as an all-stock deal. The move brought io's team directly into OpenAI, while Ive's design firm LoveFrom remains independent.

In a statement released after the merger, OpenAI described the collaboration as one rooted in 'friendship, curiosity and shared values'. The company said the goal was to rethink how humans interact with increasingly capable computers, moving beyond 'traditional products and interfaces'.

Whether that vision can succeed where others have stumbled is an open question. Recent attempts to popularise AI wearables and pins have struggled to gain traction. Still, with Ive's design influence and OpenAI's AI expertise, expectations will be high. As more details leak, the industry will be watching closely to see if the humble pen can become the next smart device people didn't know they needed.