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sam altman, Jony Ive and Laurene Powell Jobs
(Emerson Collective/YouTube)

Altman: OpenAI’s AI gadget now has a prototype

Don’t get too excited — the actual product could be nearly two years away.

Jon Keegan

Remember the mysterious AI gadget that OpenAI is cooking up in its labs under the direction of former Apple design guru Jony Ive? According to CEO Sam Altman, the product is now in the prototype phase, and he vaguely disclosed some of the details.

At the Emerson Collective’s Demo Day conference with Steve Jobs’ widow, Laurene Powell Jobs, sitting alongside Jony Ive, Altman reflected on the progress the company has made since buying Ive’s company.

On the unusual partnership between himself and Ive, Altman said:

“...finally, we have the first prototypes. I can’t believe how jaw-droppingly good the work is and how exciting it is, but also now getting to have like — the benefit of hindsight and looking at the progress, the process backwards, how much it’s all in there and how it wouldn’t have worked any other way.”

When Jobs pushed on the pair to reveal some detail about the gadget, Altman said:

“An early thing we talked about with the devices we hope to build is if you have this really smart AI that you trust to do things for you over long periods of time, filter things out. Be able to be contextually aware of when it should not only not really bother you, but when it should present information to you or ask for your input or not.”

Altman said he and Ive agreed that today’s devices offer so many stimuli that it can be overwhelming for users, so they are trying to move past that:

“You trust it over time. And when it does have just this incredible contextual awareness of your whole life, you can then go for a vibe that is not like, you know, walking through Times Square and getting bumped into and having all this stuff compete for your attention, but like sitting in the most beautiful cabin by a lake and in the mountains and sort of just enjoying the peace and calm.”

In the only vague reference to the form of the gadget, Altman said:

“And there was an earlier prototype that we were like, quite excited about, but I did not have any feeling of like, I want to pick up that thing and take a bite out of it. And then finally we got there all of a sudden, yeah.”

The product is expected to be ready in less than two years.

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Report: Anthropic cuts off xAI’s access to its models for coding

Competition between the top AI companies is fierce. Top employees are being poached, and companies are training their AI on competitors’ models to stay ahead of the pack.

Anthropic is taking steps to make sure it’s not helping the competition in any way. According to tech reporter Kylie Robison, this week Anthropic cut access to xAI developers who were using its Claude models for coding via the popular Cursor AI coding tool.

Robison reports that xAI cofounder Tony Wu told his team in an email:
“This is a both bad and good news. We will get a hit on productivity, but it rly pushes us to develop our own coding product / models.”

Robison reports that xAI cofounder Tony Wu told his team in an email:
“This is a both bad and good news. We will get a hit on productivity, but it rly pushes us to develop our own coding product / models.”

tech

xAI’s revenue is growing, but so are its staggering losses

Good news: xAI’s revenue nearly doubled to $107 million in the third quarter compared to the second.

Bad news: Its net losses grew to $1.46 billion in Q3, up from $1 billion in the first quarter, and more than 13x revenue, Bloomberg reports.

The company, which is currently worth north of $230 billion, is burning through staggering amounts of cash — nearly a billion dollars a month — in service of building data centers and developing what it calls “self-sufficient” AI that can one day power robots like Tesla’s Optimus. Meanwhile, its revenue still looks more like that of a midsize startup than a tech giant.

Despite receiving more yes than no votes, Tesla’s board didn’t approve a shareholder proposal to invest in xAI, leaving a more formal relationship between the companies unresolved, even as xAI continues to burn cash at a pace that will require steady access to outside capital.

Of course, Elon Musk’s AI company is already deeply financially intertwined with his EV company. In 2024, xAI spent nearly $200 million, largely on Tesla Megapack batteries — a figure that appears to have grown significantly in 2025.

The company, which is currently worth north of $230 billion, is burning through staggering amounts of cash — nearly a billion dollars a month — in service of building data centers and developing what it calls “self-sufficient” AI that can one day power robots like Tesla’s Optimus. Meanwhile, its revenue still looks more like that of a midsize startup than a tech giant.

Despite receiving more yes than no votes, Tesla’s board didn’t approve a shareholder proposal to invest in xAI, leaving a more formal relationship between the companies unresolved, even as xAI continues to burn cash at a pace that will require steady access to outside capital.

Of course, Elon Musk’s AI company is already deeply financially intertwined with his EV company. In 2024, xAI spent nearly $200 million, largely on Tesla Megapack batteries — a figure that appears to have grown significantly in 2025.

tech

Apple’s hardware chief is the front-runner to be the next CEO

The New York Times is the latest news organization to cite Apple sources who think the company’s hardware chief, John Ternus, will be the one to fill CEO Tim Cook’s shoes. Citing people close to Apple, the publication reports that Cook is “tired and would like to reduce his workload” and that 50-year-old Ternus is the most likely to take his place, as the company accelerates its succession planning.

The Times is in good company. Both the Financial Times and Bloomberg have previously said Ternus is the top pick to succeed Cook at the helm of the tech giant, and Ternus is currently enjoying the top spot on prediction markets. His market-implied odds of being the next CEO are currently above 60% on both Polymarket and Kalshi event contracts.

The Times is in good company. Both the Financial Times and Bloomberg have previously said Ternus is the top pick to succeed Cook at the helm of the tech giant, and Ternus is currently enjoying the top spot on prediction markets. His market-implied odds of being the next CEO are currently above 60% on both Polymarket and Kalshi event contracts.

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