The advent of generative AI was spearheaded by OpenAI, and now the company is potentially working on a distinct type of AI device.

A recent report by the WSJ reveals that OpenAI’s CEO, Sam Altman, informed employees on Wednesday that the company’s upcoming major product will not be a wearable device. Instead, it will be a compact, screenless device that is fully aware of its surroundings, capable of sitting on a desk or fitting into a pocket. Altman described this device as a “third core device” that complements a MacBook Pro and iPhone, as well as an “AI companion” that integrates into daily life.

This announcement follows OpenAI’s recent acquisition of io, a startup founded by former Apple designer Jony Ive, in a $6.5 billion equity deal. As part of the agreement, Ive will take on a key creative and design role at OpenAI.

According to reports, Altman told employees that the acquisition has the potential to add $1 trillion in market value to the company, as it creates a new category of devices distinct from handheld devices, wearable technology, or smart glasses developed by other companies.

Altman also emphasized to staff the importance of maintaining secrecy to prevent competitors from replicating the product before its launch. However, the leak of his remarks to the Journal raises questions about the level of trust within the team and how much more information Altman will be willing to disclose in the future.