OpenAI is reportedly preparing to enter the consumer hardware space with its first-ever physical product, and it may come in the form of AI-powered earbuds. According to a tipster on China’s Weibo platform, the company has shifted its initial hardware ambitions and is now focusing on a more compact and cost-efficient device powered by its own AI models.

Earlier rumors suggested OpenAI was developing more experimental hardware, such as a wearable pendant or even a smart pen. These ideas aligned with CEO Sam Altman’s past comments describing a future device that would feel more “peaceful and calm” than today’s smartphones. Interest in these concepts grew further after OpenAI hired former Apple chief designer Jony Ive, fueling speculation about a radically new kind of personal AI hardware.

However, those plans appear to have been scaled back, likely due to rising hardware development and manufacturing costs. Instead, OpenAI is said to be opting for a simpler and more familiar form factor: wireless earbuds enhanced with AI features. Beyond this, details remain scarce. The earbuds are rumored to be internally referred to as “Dime” and could launch before the end of the year.

The report also claims that this first release may not be the final vision. Once current shortages in high-bandwidth memory (HBM) ease, OpenAI is expected to follow up with a more advanced version of its AI hardware. If accurate, these earbuds could mark the company’s first step toward building a broader ecosystem that blends AI more seamlessly into everyday life.