[News] OpenAI Reportedly Shifts First AI Hardware Order from China’s Luxshare to Foxconn

OpenAI is gearing up to launch its first AI hardware product, and industry attention is increasingly focused on the potential manufacturing partner behind the project. According to Economic Daily News, citing sources, the device was originally planned to be outsourced to Chinese electronics manufacturer Luxshare. However, amid broader supply-chain diversification away from China, OpenAI has reportedly adjusted its strategy and is now expected to place the manufacturing order exclusively with Foxconn, with the product slated for release in 2026 or 2027.

The report adds that this could mean Foxconn may secure OpenAI’s orders spanning both the cloud—covering AI servers—and the edge, including end devices, potentially providing an additional boost to its longer-term growth momentum.

As for the reasons behind the reported shift, sources cited by the report say OpenAI moved the contract manufacturing order from Luxshare to Foxconn largely due to considerations over manufacturing location, as the company does not want its new AI device to be produced in China. The product is expected to be manufactured in the U.S. or Vietnam, the report adds.

Potential Product Form Factor: Pen-Style, Audio-Focused

Regarding the device’s potential form factor, Chosun Daily, citing industry sources, says OpenAI’s AI device is being designed in a pen-style format that integrates handwriting input, voice interaction, and ChatGPT capabilities into a single portable unit. The approach reflects a broader industry shift toward audio-first experiences, where screens recede and voice becomes the primary interface, TechCrunch notes.

In addition, The Information, citing sources, reports that OpenAI is developing a broader lineup of devices to be released over time, rather than a single product, potentially including smart glasses and a display-less smart speaker.

In line with a move toward screenless hardware, The Information, citing sources, says OpenAI is enhancing its audio AI models in preparation for an eventual AI-powered personal device, with the next audio model targeted for release in the first quarter of 2026.

A screenless design is intended to reduce the risk of user addiction, as former Apple design chief Jony Ive, who is collaborating with OpenAI on its hardware initiatives, has described this as a key priority and views new devices as an opportunity to address the shortcomings of earlier consumer technologies, according to The Information.

Read more

• [News] Foxconn Teams Up With OpenAI on AI Hardware; Output Hits 1,000 Server Racks a Week
• [News] OpenAI and Jony Ive’s First AI Device Leaked: Reportedly No Wearables, Launch No Earlier Than 2026

(Photo credit: OpenAI)