OpenAI and Jony Ive hit snags on $500B AI device
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OpenAI and renowned designer Jony Ive are wrestling with several technical setbacks with their NEW reserved AI device as they work tirelessly to establish a blockbuster tech product in 2026 The San Francisco startup led by Sam Altman acquired Ive’s company LoveFrom (io) last May for $6.5 billion, but it shared little about the two companies’ joint project. Now, sources familiar with the effort say the two are working on a palm-sized, screenless device that listens, watches, and responds to its environment, but key hurdles have yet to be resolved. OpenAI and Ive battle software glitches and compute shortages Ive and his team, famous for iconic Apple products such as the iMac, iPod, and iPhone, have built early hardware prototypes. However, progress is being slowed by software hurdles and the infrastructure required to support OpenAI’s powerful models. Issues under debate include shaping the assistant’s “personality,” addressing privacy concerns, and covering the steep computing costs of scaling the device to mass markets. “Compute is another huge factor for the delay,” said one person close to Ive. “Amazon has the compute for an Alexa, so does Google [for its Home device], but OpenAI is struggling to get enough compute for ChatGPT, let alone an AI device — they need to fix that first.” A person close to OpenAI described the current glitches as typical growing pains in product development. According to multiple people familiar with the project, OpenAI and Jony Ive are working on a device about the size of a smartphone, equipped with a camera, microphone, and speaker. One source said the gadget could even feature multiple cameras. The device is designed to sit on a desk or table, but can also be carried around. Unlike voice assistants that activate with a trigger word, it would be “always on,” with sensors…