OpenAI, the organization behind ChatGPT, is allegedly encountering financial difficulties, with some projections suggesting it could exhaust its resources by 2027. Even a prospective investment round of $100 billion might not prolong the company’s viability significantly. A novel product, crafted by Apple alum Sir Jony Ive, could serve as a remedy, contingent on its release before funds are depleted. In spite of obstacles, OpenAI intends to unveil Ive’s inaugural product this year, although specifics remain unconfirmed.

The Information states that the initial product will be an AI-driven smart speaker featuring a facial recognition camera, priced between $200 and $300, anticipated to debut by February 2027. The camera might facilitate purchases via facial recognition, yet its precise application is unknown.

Although a smart speaker may not be the pinnacle of innovation, additional AI devices like eyewear and a smart lamp are supposedly in progress, with the eyewear not slated for mass production until 2028. There are no updates regarding the rumored smart earbuds.

The potential of the smart speaker to create excitement and secure pre-orders is dubious, especially considering privacy issues related to a camera in one’s living area. In contrast to Apple, which prioritizes privacy and avoids ads, OpenAI does engage in advertising, which might dissuade buyers.

The smart speaker is intended to monitor users and propose actions to assist in achieving their objectives, such as suggesting bedtime prior to an important meeting. If this resonates with consumers, it could open a route to profitability for OpenAI. Otherwise, CEO Sam Altman may encounter mounting pressure to obtain financing.