TMTPOST -- OpenAI has reportedly entered a strategic partnership with Luxshare Precision, a major player in China’s Apple supply chain, to develop a next-generation AI consumer device, according to The Information.
The collaboration aims to create a portable, context-aware device powered by the large language model behind ChatGPT, with the potential to redefine human-computer interaction beyond smartphones.
Sources familiar with the matter said OpenAI’s first AI device is still in the prototype stage, but its design concept has already generated significant industry attention. The device is expected to be a pocket-sized, portable terminal featuring an advanced context-aware system, fully integrated with the large language model behind ChatGPT, enabling more natural and intuitive human-computer interaction.
Industry observers note that such a device could establish a completely new AI interaction platform beyond smartphones, potentially disrupting the market share of Apple and other consumer electronics manufacturers, and challenging the dominance of traditional hardware.
Poaching Apple’s Talent and Supply Chain: OpenAI Is Serious About Hardware
As a superstar company in the era of large AI models, OpenAI’s ambitions go far beyond software leadership. The key to AI is real-world application, so expanding into hardware has become a necessary move for OpenAI.
It’s worth noting that OpenAI began laying out its hardware strategy months ago and has already invested heavily in this area. Back in May, the company acquired io Products, founded by former Apple design chief Jony Ive, for $6.5 billion (about 46.19 billion RMB). Previously, then-OpenAI CTO Mira Murati hinted to the media: “We are exploring how to break through the limitations of screens with artificial intelligence.” The partnership with Luxshare Precision is clearly a critical step in OpenAI’s hardware strategy.
Moreover, to accelerate product development and avoid unnecessary detours, OpenAI began recruiting a large number of engineers from Apple early on. According to relevant information, by 2025, OpenAI had already recruited more than twenty hardware engineers from Apple—double the number from last year. These individuals previously worked on core areas at Apple, including user interfaces, wearable devices, camera, and audio technologies. Among them are industry heavyweights such as Cyrus Daniel Irani, a pioneer in Siri’s visual interactions, and Erik de Jong, former head of Apple Watch hardware.
To attract top talent, OpenAI has offered highly competitive “transfer packages,” granting new hires over $1 million in stock upon joining, along with a promise of a “small team, fast decision-making” environment that reduces bureaucracy and fosters team collaboration.
Interestingly, some Apple employees have grown frustrated with the company’s current products, which they see as offering only “incremental changes,” as well as with cumbersome internal processes. The lackluster stock performance over the past year has further increased their willingness to leave. As a result, OpenAI has received a large number of unsolicited job applications from Apple staff, many of whom hope to reunite with former Chief Design Officer Jony Ive and hardware veteran Tang Tan to recapture the creative energy of the “iPhone era.”
According to insiders, the current wave of employee departures has triggered alarm within Apple. The company’s supply chain and manufacturing teams had planned a business trip to China in August, but it was canceled at the last minute to prevent key personnel from being away from headquarters for extended periods—thus reducing the risk of being poached by OpenAI.
In addition to directly recruiting some of the best hardware talent, OpenAI is also targeting Apple’s supply chain, such as Luxshare Precision, which is at the center of recent rumors.
In fact, OpenAI’s entry into the hardware sector and its cooperation with Luxshare Precision comes as no surprise. As a leading company in the consumer electronics supply chain, Luxshare Precision is one of Apple’s core contract manufacturers, producing a range of products including the iPhone and AirPods. With the rapid development of AI and XR, Luxshare Precision is also accelerating its own expansion and has already become a major supplier for cutting-edge devices like AI glasses. Previously, Xu Guojun, ABG R&D Director at Luxshare Precision, stated that “AI large models will become infrastructure services, just like electricity.”
