Why it matters: The mysterious AI device being created by OpenAI and former Apple designer Jony Ive's LoveFrom studio has been revealed – and it sounds a bit weird. According to a new report, it will be a hockey-puck-sized smart speaker shaped like a doughnut. It will also have "moving parts that help give it personality" and cost between $300 and $400.

News of the device, whose journey began when OpenAI announced it was acquiring Ive's AI hardware startup io for $6.5 billion last year, comes from Bloomberg.

The publication writes that it will work like an everyday smart speaker, but it will actually be the "physical manifestation" of ChatGPT.

Because of the speaker's doughnut-like design and the fact it's battery-powered, users will be able to carry it around the home and place it in different locations with ease. It's said to be constructed from high-quality metal and have a premium look, which is to be expected for a smart speaker that costs up to $400.

Those strange-sounding moving parts will apparently move to show when the speaker is responding – a pair of fake lips that flap when it speaks would certainly add personality. There will also be lights that illuminate when it's listening. It's also expected to feature cameras and other sensors so it can provide visual information to the AI.

Another expected feature is the use of advanced AI models that allow the speaker to engage in free-flowing conversations with users and learn about them to tailor its responses. Bloomberg says the device will launch sometime in 2027.

It was reported last November that OpenAI had completed the first working prototype. Sam Altman called the screenless device "simple, beautiful, and playful," while reports said its cameras and microphones would give it spatial awareness and allow it to respond contextually.

Interestingly, Apple alleges in its trade secrets lawsuit that OpenAI misled one of Cupertino's manufacturing partners into performing its confidential metal-finishing technique by falsely suggesting Apple had approved it. OpenAI, for its part, said it is "building something entirely new and different from anything at Apple."

OpenAI plans to make more than just expensive smart speakers. There were reports of AI earbuds codenamed Sweetpea in January, though court filings later said the Ive-designed device is not wearable or in-ear. The company has since launched the $230 Codex Micro, a miniature keypad designed to control its Codex coding agent. Bloomberg says the speaker is intended to be the first in a family of devices, with OpenAI hoping to eventually build hardware capable of replacing today's smartphones.