OpenAI is developing an AI-based device similar to Apple AirPods and is targeting a launch in the second half of 2026, TechCrunch reported on Tuesday.

Chris Lehane (크리스 레헤인), OpenAI's head of global affairs, said at an Axios-hosted panel discussion in Davos that the company is making smooth progress toward announcing its first hardware device in the second half of this year.

Specific product specifications were not disclosed, but Asian supply chains say OpenAI has set a target to ship 40 million to 50 million units in 2026.

The hardware OpenAI is developing is likely to compete directly with Apple by featuring its own operating system and app store. OpenAI's recent active hiring of Apple software engineers is also drawing attention.

The hardware has the codename Sweet Pea and is expected to have a distinctive design that sets it apart from existing earbud products. It will run on a custom 2-nanometer processor and is expected to handle AI tasks locally rather than sending requests to the cloud.

Earlier, OpenAI signaled its entry into the hardware market by acquiring LoveFrom, led by former Apple chief designer Jony Ive.

Ive designed the iPhone and AirPods at Apple and is expected to play a similar role in his collaboration with OpenAI.

Moves by other big tech companies such as Meta and Amazon are also taking clearer shape in the AI hardware market. Meta is developing AI glasses in collaboration with Ray-Ban, and Amazon acquired the AI-based meeting recorder Bee.