OpenAI has announced plans to unveil its first hardware device in the second half of 2026, marking a significant expansion beyond software. Chief Christopher Lehane revealed at the World Economic Forum Annual Meeting 2026 that "devices" are a top priority for the company this year, describing AI in devices as a near-future innovation that will integrate artificial intelligence into daily tools and gadgets.
The device, developed in collaboration with former Apple design chief Sir Jonathan "Jony" Ive, is expected to be small and screen-less, possibly wearable, and designed around conversational interaction. OpenAI CEO Sam Altman described the product as more "peaceful" than a smartphone and simple to use, with ambitions to move beyond the smartphone era into "ambient computing." The company acquired Ive's design studio for $6.5 billion, though exact sales dates for the hardware remain undetermined, with shipping likely in 2027.
Simultaneously, OpenAI reported explosive financial growth, with annualized revenue reaching $20 billion in 2025—a dramatic increase from $6 billion in 2024 and $2 billion in 2023. Chief Financial Officer Sarah Friar announced that the company's computing capacity grew from 0.6 gigawatts in 2024 to 1.9 gigawatts in 2025, with weekly and daily active users reaching all-time highs.
The company's 2026 strategy focuses on "practical adoption" in health, science, and enterprise sectors. OpenAI also confirmed it will begin testing ads in ChatGPT for U.S. users on free and Go tiers, while paid tiers will remain ad-free. The company emphasized that conversations will not be shared or sold to advertisers.
OpenAI faces legal challenges alongside its expansion, with Elon Musk filing a lawsuit claiming the organization violated its original nonprofit mission when it restructured into a for-profit entity. Musk seeks up to $134 billion in damages from OpenAI and Microsoft, arguing he provided about $38 million (roughly 60% of OpenAI's early seed funding) and contributed credibility, staff recruitment, and key connections.
Infrastructure development continues with a diversified ecosystem of compute providers. The company signed an agreement with Nvidia in September where Nvidia committed $100 billion to support OpenAI in building at least 10 gigawatts of systems, though Nvidia told investors in November there was no assurance the agreement would progress to an official contract.
