OpenAI may sell a smart speaker with facial recognition camera

It's no secret that OpenAI, the company behind ChatGPT, is losing money at a rapid clip. Some estimates suggest the company will run out of cash sometime in 2027 — and even a possible $100 billion investment round won't keep the lights on for long.

What might help? A new product — specifically, one designed by Sir Jony Ive, the Apple veteran brought on board last May at a cost of $6.5 billion — assuming it can launch while the company still has cash in the bank. Despite multiple setbacks, OpenAI has said Ive's first product will be announced this year, even as they're staying tight-lipped about what it actually is.

Now The Information says it has the details on that first launch: An AI-powered smart speaker with a facial recognition camera built in. Reportedly, it will cost between $200 and $300. But — and given the situation, this is a huge but — we won't get to see it until Feb. 2027 at the earliest.

The camera will "allow people to buy things by identifying them with a facial recognition feature similar to Apple’s Face ID," members of the company's 200-employee strong AI device group told the site. Whether facial recognition will facilitate the sign-in process or be used to actually purchase products (blink once for coffee maker, blink twice for frother?), is not yet clear.

A smart speaker may not be the most inspiring product an AI company could dream up, but others are supposedly on the way. AI glasses are next, according to the report, but "likely won't be ready for mass production until 2028." An AI-powered smart lamp is also in the works. There's no word on another rumored OpenAI product — smart earbuds.

Will the smart speaker generate enough enthusiasm (and pre-orders) to keep the company afloat? To answer that, you have to wonder whether people really want a speaker with a camera that can scan their face in their living room. Apple might be more likely to get away with the creepiness factor of that — after all, the iPhone maker constantly emphasizes its privacy features, and its business model doesn't include selling ads.

But OpenAI does sell ads — and consumers are already wary of how many ads the Amazon Echo smart home device gives them. Besides, the market for AI devices is likely to be a lot more crowded in 2027, with Apple said to be working on a smart pin.

So what's the value proposition of a smart speaker? "The device will be able to observe users through video and nudge them toward actions it believes will help them achieve their goals," one of the Information's sources inside the company said. "You could imagine the device observing its user staying up late the night before a big meeting and suggesting that they go to bed, for example."

If a creepy speaker being the boss of your bedtime works for you, then OpenAI may just have a pathway to profitability. Otherwise, CEO Sam Altman may be increasingly desperate to keep the company funded. Perhaps his smart speaker with camera could also look for loose change in your couch cushions.