The secretive AI hardware collaboration between OpenAI and former Apple design chief Jony Ive is reportedly struggling with significant technical roadblocks, according to the Financial Times. After months of development and high-profile talent recruitment from Apple, Google, and other tech companies, the project remains stuck at the prototype stage with no working demos.

The article reports that OpenAI and Jony Ive are developing a palm-sized, screenless AI assistant slated for a 2026 release. The device reportedly includes multiple cameras, a smartphone-like form factor, an always-on design, and a continuously learning assistant memory.

Key development challenges:

  • Cloud dependency issues - The underlying AI capabilities still require cloud computing, with efforts to enable on-device intelligence reportedly stymied

  • No finalized technical specs - Despite the star power of its leadership, there's still no confirmed processor architecture, hardware partners, or final form factor

  • Missing timeline and pricing - No clarity on go-to-market strategy or when (or if) the device might actually ship

  • Extreme secrecy - Industry observers note that even among AI insiders, there have been no leaks about the device's real-world capabilities or unique selling points

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