By Luxshare Precision Industry Co., a key assembler in Apple’s hardware supply chain, saw a sharp gain of about 10% in its shares on Monday after reports emerged that it may be manufacturing a new AI-centric device for OpenAI. The move underscores growing momentum in the AI hardware sector.
Reportedly, OpenAI is developing a pocket-sized, context-aware gadget—still at the prototype stage—designed to operate closely with its AI models. Luxshare, known for large-scale production, is expected to provide the hardware manufacturing backbone.
Earlier this year, OpenAI acquired io Products, a startup founded by leading designers including Jony Ive, to deepen its hardware design capabilities. Now, by forging relationships with Apple’s supply chain partners like Luxshare and Goertek, OpenAI seems to be building a more robust infrastructure to produce devices rather than rely solely on software.
The stock market’s reaction reflects both the promise and the uncertainty. A near double-digit gain in Luxshare’s stock signals faith that the report is credible and that Luxshare stands to benefit. Still, market watchers caution that prototypes often do not lead to volume production; component shortages, regulatory hurdles, or shifts in strategy could derail or delay outcomes.
This development also positions OpenAI in more direct competition with established device makers. Traditional tech giants like Apple, Google, and Samsung have dominated consumer electronics; if OpenAI crosses the threshold into hardware, it may redefine how users engage with AI technologies. For suppliers like Luxshare, such partnerships could mean moving up value chains and margin ladders.