Luxshare Precision Industry shares rose 10% after it reportedly signed a deal with OpenAI to develop hardware for its large language models.
Luxshare shares climbed 10% on Monday following reports of an agreement with OpenAI to develop new hardware. The China-based company is set to produce a consumer AI device as part of this latest deal. A prototype of the device is already being developed using ChatGPT’s large language models.
Industry insiders familiar with the project have revealed that the design could resemble a smart speaker without a screen, creating competition for Apple’s Siri devices. One source indicated OpenAI plans to launch the first consumer hardware device between late 2026 and early 2027 if testing remains on track.
So far in 2025, the Shenzhen-listed Luxshare, which is an official supplier to Apple, has seen its stock price rise more than 50%. The company is also believed to be considering a secondary listing in Hong Kong, in a move that could raise up to $3 billion.
Why is the Luxshare and OpenAI deal important?
The timing of this deal with Luxshare is significant as it demonstrates a clear move from OpenAI to move beyond software and enter the market for physical consumer technology products. Through its latest calculated decision to shift towards hardware, OpenAI would be able to control both the software experience and the physical platform supporting AI.
Industry watchers said OpenAI’s device could compete directly with Apple products, including the HomePod, by offering AI interactions designed around natural voice commands. It signals OpenAI’s intention to challenge Apple in the consumer technology market, rather than simply powering third-party apps.
Luxshare’s year-to-date gains highlight investor confidence in the firm’s prospects, especially its potential to benefit from OpenAI’s move into physical consumer devices. Its recent stock jump also underlines how much the market values its growing role in technology partnerships beyond Apple.
OpenAI draws on Apple suppliers and talent
Aside from the reported agreement with Luxshare, OpenAI has strengthened its hardware team by recruiting several former Apple employees. The group now includes Tang Tan, a former Apple executive, who has been brought in to oversee OpenAI’s growing hardware division with responsibility for design and product direction.
Earlier this year, the American AI giant completed the acquisition of io Products, a startup founded by former Apple designer Jony Ive, for $6.4 billion. Ive, responsible for Apple icons like the iPhone and MacBook Air, is expected to shape OpenAI’s new devices significantly.
Luxshare’s involvement places one of Apple’s most trusted partners inside OpenAI’s circle, since the company already assembles AirPods, the Vision Pro, and other hardware. This collaboration is a sign of how closely linked OpenAI is becoming with former Apple talent and Apple’s longstanding supplier network.
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