In a notable development for both hardware manufacturers and AI companies, Luxshare Precision Industry Co., a prominent assembler for Apple, saw its share price jump by about 10% following reports that it has struck a deal with OpenAI to build a prototype AI device. The market response underscores investor confidence in hardware-centric AI innovation.
The project is said to be in early prototype form, with the aim of creating a pocket-sized, context-aware gadget that would integrate deeply with OpenAI’s AI models. This differs from merely embedding software into existing devices; the goal appears to be hardware optimized for AI tasks.
OpenAI has been building capability through design acquisitions (notably io Products) and by recruiting talent with experience in industrial design, audio, and user interfaces. In parallel, the company is also working with other component suppliers like Goertek. These moves suggest that OpenAI is serious about moving into a realm where hardware and AI are tightly coupled.
For Luxshare, the potential deal may represent a strategic transformation: from being a critical piece in Apple’s manufacturing machine to becoming a partner in AI device creation. That could lead to diversification of its revenue base, higher margin work, but also greater exposure to the risks inherent in startups / prototype work—cost overruns, uncertain regulatory environments, and fierce competition.
As of now, neither company has confirmed the details. Observers are watching for product design details, launch timelines (est. late 2026-2027), and how the market for AI hardware evolves. The next few quarters may reveal whether this is hype or a real turning point.
