Apple-supplier Luxshare shares pop 10% on report of OpenAI hardware deal

Shares of Luxshare, a Shenzhen-based device assembler and Apple supplier, surged approximately 10% on Monday after reports emerged about a potential partnership with OpenAI to create a consumer AI device. According to information from The Information, Luxshare is currently working on a prototype that utilizes ChatGPT's large language models. Sources indicate that one of the AI products discussed by OpenAI may resemble a smart speaker without a display, placing it in direct competition with existing Apple devices that utilize Siri. The timeline for launching these innovative products is estimated to be late 2026 or early 2027. This significant rise in Luxshare's stock has contributed to a robust 50% increase in its year-to-date performance. Notably, trading on the Shenzhen Stock Exchange is limited to a maximum daily fluctuation of 10% based on the previous day's closing price. Additionally, Luxshare is reportedly contemplating a secondary listing in Hong Kong this year. While neither Luxshare nor OpenAI provided immediate comments on the matter, OpenAI has consistently expressed interest in entering the dedicated AI device market, which could pose a challenge to Apple's dominance, particularly concerning its iPhone lineup. According to reports, OpenAI has been actively recruiting talent from Apple for its hardware division, now overseen by former Apple executive Tang Tan. Earlier this year, OpenAI expanded its hardware ambitions by acquiring Jony Ive's startup, io Products, in a significant deal worth $6.4 billion. Ive, renowned for designing some of Apple's most iconic products, including the iPhone and iPad, is expected to bolster OpenAI's hardware capabilities. Furthermore, OpenAI has also approached Goertek, another company that assembles Apple devices, to supply components for its forthcoming AI devices, as reported by The Information. This move marks OpenAI's continued commitment to deepening its hardware efforts, including hiring key personnel from Meta's augmented reality division and investing in robotics startups focused on integrating AI into the physical realm.