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OpenAI teams with Apple supplier Luxshare to build consumer AI device

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OpenAI has struck a deal with Luxshare, a major Apple supplier, to manufacture a prototype consumer AI device, according to The Information. The pocket-sized gadget is being designed to work natively with OpenAI’s AI models and adapt to user context, potentially offering an alternative to smartphones and PCs as the main way people interact with artificial intelligence.

The project represents one of the boldest pushes yet by an AI firm into dedicated hardware, rather than layering AI onto existing devices. Analysts say an “AI-native” product could open entirely new markets while challenging the dominance of established consumer electronics leaders such as Apple, Samsung, and Google.

OpenAI earlier this year acquired io Products, a hardware startup founded by former Apple designer Jony Ive, in a $6.5 billion deal to accelerate its hardware ambitions. Luxshare—best known for assembling iPhones and AirPods—will provide the large-scale manufacturing muscle. OpenAI has also reached out to Goertek, another Apple supplier, for components such as speaker modules.

Neither Luxshare nor OpenAI has commented publicly on the report. But the move underscores OpenAI’s effort to expand beyond software like ChatGPT into consumer electronics, a sector where hardware-software integration is often the key to success.

If successful, the device could pose a new kind of competition to smartphones by offering a lightweight, AI-first alternative—part personal assistant, part communications tool—that reimagines how users connect to digital ecosystems.

Nvidia invests $900 million to acquire Enfabrica talent and technology

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Nvidia has reportedly spent more than $900 million to bring Enfabrica’s CEO, Rochan Sankar, and other staff into the company, while also securing a license for Enfabrica’s technology, according to CNBC. The deal, a mix of cash and stock, closed last week, and Sankar has already taken up his new role at Nvidia.

Enfabrica, a Silicon Valley chip startup founded by former Broadcom and Alphabet engineers, specializes in solving one of AI’s biggest bottlenecks: interconnecting massive numbers of chips efficiently. Its networking technology allows around 100,000 AI chips to work together as if they were one computer—minimizing costly downtime caused when processors wait for data to move across networks.

The startup had previously raised $260 million in venture capital and in July unveiled a chip-and-software system designed to reduce memory chip costs in large-scale AI data centers. Nvidia’s acquisition echoes a recent trend of tech giants pulling in specialized startups and their leaders to strengthen AI infrastructure. Meta recently took a 49% stake in Scale AI while elevating its CEO Alexandr Wang to a strategic role, and Google hired top staff from AI code generation startup Windsurf after OpenAI attempted to acquire it.

Neither Nvidia nor Enfabrica has publicly commented on the reported deal.

Nvidia spends $900M to hire Enfabrica CEO and license startup’s tech

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Nvidia (NVDA.O) has spent more than $900 million to bring on Enfabrica CEO Rochan Sankar, along with other employees from the AI hardware startup, while also licensing the company’s technology, CNBC reported Thursday.

The deal, paid in cash and stock, closed last week, and Sankar has already joined Nvidia, according to people familiar with the arrangement.

Enfabrica, based in Silicon Valley, is addressing a major bottleneck in artificial intelligence: how to connect tens of thousands of chips into a network that can operate as a single, unified computer. Without efficient networking, even high-performance chips like Nvidia’s can sit idle while waiting for data. The startup’s technology reportedly enables up to 100,000 AI chips to be linked before network slowdowns occur.

Nvidia declined to comment on the report, and Enfabrica did not immediately respond to inquiries. Founded by former Broadcom (AVGO.O) and Alphabet (GOOGL.O) veterans, Enfabrica has raised $260 million in venture capital and in July launched a chip-and-software system designed to reduce memory costs in data centers.

The move mirrors recent strategies by Big Tech rivals. In June, Meta (META.O) acquired a 49% stake in Scale AI and brought CEO Alexandr Wang into its AI leadership, while Google hired key staff from Windsurf, an AI code generation startup courted by OpenAI.