OpenAI is reportedly preparing to launch its first hardware product, a rechargeable "humanlike" smart speaker, according to Bloomberg's Mark Gurman. The move comes despite warnings from former executive Fidji Simo that the company risks being distracted by costly side projects, and analysts note it is entering a smart speaker market that is stagnant or shrinking, raising questions about the strategic wisdom of the venture for a company that is not yet profitable.

Industry data from IDC shows smart speaker shipments have fallen sharply since peaking above 100 million units in 2022, with declines of 16.3% in 2023 and 11.8% in 2024, before a smaller 6.7% drop in 2025 following Amazon's launch of Alexa+; a further 9.6% decline is forecast for this year. Analyst Jitesh Ubrani says consumers have little reason to upgrade existing devices since new features are cloud-based, and warns OpenAI faces stiff competition from established players in a category that has changed little. The reported device will include a camera, sensors and moving mechanical parts, likely pushing its price well above the low-cost norm for speakers, and will run on OpenAI's new GPT-Live-1 voice model, designed for more natural, humanlike conversation.