OpenAI is preparing to launch its first hardware product - AI-powered earbuds - according to a Chinese tipster on Weibo. The company has scaled back on hardware development due to rising costs, focusing on this more accessible entry point into physical devices. This represents a significant shift for the AI company primarily known for software solutions.

Earlier reports suggested a pendant or pen, aligning with CEO Sam Altman's vision of a device more "peaceful and calm" than a smartphone. This vision gained credibility with the hiring of Apple's ex-designer Jony Ive, whose expertise was expected to shape the company's first physical product.

Plans have evolved to the simpler earbuds approach. The product is rumored to be called "Dime" and is expected to hit the market by the end of 2026. While details remain scarce, the earbuds will reportedly incorporate OpenAI's proprietary AI model for functionality.

A more advanced version is already in development. OpenAI plans to introduce this upgraded model once the HBM (high-bandwidth memory) shortage improves, suggesting future iterations could offer enhanced capabilities beyond the initial release.

Quick Fact: Expected to hit the market by the end of 2026.