Smart speakers could help OpenAI lose even more money

This feels like the epitome of a distracting side quest. Primakov/Shutterstock This past spring, former OpenAI executive Fidji Simo warned employees the company was at risk of missing its moment because it was "distracted by side quests," referring to costly software projects like Sora, which OpenAI shut down in April. This week, Bloomberg's Mark Gurman shared an update on the company's nascent hardware efforts, writing that OpenAI's debut first-party device would be a "humanlike" rechargeable smart speaker. For an unprofitable company, this feels like the epitome of what Simo hoped to avoid. In 2026, the market for smart speakers and displays isn't growing. "In terms of the trend line, it's been slowing for quite some time, and we're expecting declines in the upcoming year," says Jitesh U