OpenAI and Jony Ive’s AI device faces a delay due to privacy concerns

OpenAI and designer Jony Ive are struggling to overcome key technical problems for their secret AI device, according to various media reports. The palm-sized, The palm-sized screen-free gadget now faces a serious threat to its planned 2026 release schedule. The partnership, formed when OpenAI acquired Ive’s startup, io, for USD 6.5 billion earlier this year, aimed to redefine personal computing. Unresolved issues around product personality, user privacy, and core computing resources now slow the project.

The device represents a massive hardware bet for the software company. It features a camera, microphone, and speaker. It is designed to sit on a desk or travel in a pocket. The design philosophy demands the device remain “always on,” continuously gathering data from its surroundings. This constant observation builds a virtual assistant's working “memory” of the user's environment.

Compute and Context Create Roadblocks

Two primary issues hold back the 2026 debut. The first issue centres on core functionality. Engineers struggle to teach the device when to engage a user and when to stay silent. The goal remains a helpful, non-intrusive companion. Failing to establish this conversational balance risks creating an irritating user experience, a critical failure point for any new consumer or B2B product.

The second issue involves infrastructure. Reportedly, OpenAI lacks the necessary compute resources to power the device at scale. While companies like Amazon and Google already run massive cloud networks for their smart speakers, OpenAI must secure and scale its own computational backbone to support its much more demanding large language models. The resource strain currently affects the primary ChatGPT service, which suggests the new hardware requires significant back-end buildout before mass deployment.

Privacy Concerns

The privacy and data handling issues present the most substantial hurdle. The device’s “always on” nature demands continuous collection of audio and visual data. This model generates severe corporate governance and user trust questions.

Enterprises require stringent data minimisation and strict audit trails for sensitive information. A device that constantly records business meetings or desktop interactions without a clear visual interface for consent, like a screen, complicates compliance with global data protection laws. The lack of transparency in the data lifecycle presents a liability risk. Building trust in the device’s security must precede any widespread enterprise adoption.

Now it is being suggested that OpenAI and Ive must quickly resolve these deep-seated technical and ethical challenges. Their device plans to enter a market where previous screen-less AI hardware efforts, such as the Humane AI Pin, faced immediate difficulty. The partnership bets that superior design and powerful AI can succeed where others failed. However, the current snags suggest the challenge of building a fully contextual, screen-free companion proves harder than the acquisition price suggested.

The delay provides a stark reminder: marrying complex AI software with physical hardware always takes longer than projected.