OpenAI's chief executive, Sam Altman, is working with Jony Ive, the designer behind the iPhone, iPod, MacBook and Apple Watch, to develop hardware for ChatGPT.
Ive now works with only a small number of clients, and OpenAI has become his primary partner on this project.
Why OpenAI wants hardware at all
There is speculation over OpenAI's motivation for entering the hardware market.
Some theories suggest the company wants a competitive differentiator, sometimes called a moat, to keep users loyal if rival AI models become increasingly similar to its own.
Apple's lawsuit
Apple has sued OpenAI, along with two of its current employees and io Products, the hardware startup Ive co-founded that OpenAI acquired last year in a deal reportedly worth around $6.5 billion.
The lawsuit alleges that OpenAI misappropriated Apple's trade secrets while developing its new device, describing the company's hardware business as "rotten to its core".
Ive himself is not named as a defendant in the case, though his role as io's co-founder features throughout Apple's filing.
Apple's legal action reflects concern that its former design chief is helping build a product intended to compete directly with its own hardware.
OpenAI has rejected the allegations, saying it has no interest in other companies' trade secrets.
Why hardware is harder than software
Developing physical hardware carries far greater risk than building software, since design and manufacturing decisions are largely fixed once finalised and cannot easily be updated afterwards.
Because AI hardware is not yet a proven product category, the ongoing lawsuit could force OpenAI into costly redesigns or a change of manufacturer, potentially delaying the project.
What happens next
A preview of the device is expected sometime this year, with the first models currently scheduled to ship in 2027.
Whether that timetable survives contact with a live court case may say as much about the product's prospects as anything OpenAI has revealed about the hardware itself.
