OpenAI’s highly anticipated hardware collaboration with Apple’s former design chief Sir Jony Ive has reportedly hit a wall, with reports suggesting the project may not launch until well into 2026.

According to the Financial Times, the device, described by insiders as a palm-sized, screenless “AI companion”, is facing significant technical and infrastructure challenges.

The product, which aims to interpret audio and visual cues from its environment and respond naturally to users, is being designed by Ive’s studio (formerly known as LoveFrom) and developed under the guidance of OpenAI CEO Sam Altman.

OpenAI confirmed its partnership with Ive earlier this year when it acquired his company, io, in a US$6.5 (A$9.8 billion) deal.

The move was seen by many as the start of a hardware push aimed at producing the “iPhone of AI.”

But progress has reportedly been slower than expected.

Sources told the FT that the team is still struggling to define the AI assistant’s personality and mannerisms, balancing a tone that feels natural but not intrusive, while also addressing privacy concerns for a device that is “always on.”

Perhaps the biggest hurdle is computing power.

While the likes of Amazon and Google can rely on vast cloud infrastructure for their smart devices, OpenAI is already grappling with the demands of running ChatGPT at scale.

Expanding that capacity to power millions of consumer devices could require massive new investment in hardware and data centres.

The delays may not come as a surprise given the collapse of Humane’s AI Pin earlier this year. The wearable device, once billed as a phone killer, was discontinued after weak sales and major performance issues.

Despite this, expectations remain high for Altman and Ive’s mystery product, which could redefine how humans interact with AI if launched successfully.