OpenAI Taps Foxconn to Build Jony Ive's AI Device, Drops Chinese Supplier [Report]

OpenAI has reportedly handed exclusive manufacturing orders for its first consumer hardware device to Foxconn, severing ties with Chinese supplier Luxshare in a bid to move production out of China. According to a report from United Daily News, the move is part of a strategy to avoid the "red supply chain," with manufacturing now expected to take place in the United States or Vietnam.



The device, internally codenamed "Gumdrop," is moving into the design phase with a launch targeted for 2026 or 2027. It is being developed alongside former Apple design chief Jony Ive, who recently discussed the project publicly with OpenAI CEO Sam Altman. While Altman has described the concept as "simple, beautiful, and fun," supply chain sources suggest it could take the form of a smart pen or a wearable audio device.


The hardware is described as comparable in size to an iPod shuffle—small enough to be worn around the neck or slipped into a pocket. It reportedly features a microphone and camera to perceive the user's surroundings, tracking with earlier rumors of a screenless device focused on voice interactions. The report also mentions the ability to transcribe handwritten notes directly to ChatGPT.

By securing this deal, Foxconn solidifies its position as OpenAI's primary hardware partner. The manufacturer already handles the company's AI servers and will now produce its consumer endpoints as well.

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