Reports describe a camera, motion sensors, and mechanical parts that move on their own.
OpenAI's $6.5 billion acquisition of io Products brought elite hardware design talent into the project.
The device is described as a personalized AI companion that adapts over time to its owner.
OpenAI is reportedly developing multiple hardware products, aiming to eventually replace the smartphone itself.
Apple's trade secrets lawsuit against OpenAI adds fresh uncertainty to the device's already-pushed 2027 timeline.
OpenAI is stepping into hardware with a personal AI companion — but delays and legal battles loom.