OpenAI AI Hardware, Google CodeMender, Nvidia GPU Support

The artificial intelligence sector is experiencing rapid development and significant investment, alongside emerging challenges. OpenAI, in collaboration with Jony Ive, is working on a new pocket-sized, screen-free AI hardware device, envisioned as a 'third core device' beyond phones and laptops. However, this project faces considerable delays beyond 2026 due to substantial hurdles in securing enough computing power, addressing privacy concerns from its always-on cameras and microphones, and defining the AI's personality. OpenAI has acquired Ive's startup, io, for $6.5 billion in an all-stock deal to advance this hardware. Meanwhile, OpenAI is also positioning ChatGPT for AI-driven commerce, aiming to create a hub for buying and selling. In a different domain, Google DeepMind has introduced CodeMender, an AI agent that automatically identifies and fixes software vulnerabilities, having already submitted 72 security patches to open-source projects. Datadog has reached over 1,000 integrations on its platform, including support for NVIDIA GPU monitoring and AI models from OpenAI and Anthropic, offering unified observability for complex tech stacks. The broader AI market is seeing increased investor interest, with companies like Applied Optoelectronics experiencing stock surges due to AI deals. Visa is also deeply integrating AI, with over 100 internal AI applications and a $3.5 billion investment in its AI platform, exploring 'agentic e-commerce.' Separately, filmmaker Josh Kerrigan is using AI tools like Midjourney and Runway to create unique sci-fi content, navigating AI's limitations. In public spaces, advertisements for a wearable AI companion pendant called Friend have drawn backlash and vandalism in New York City, with concerns about loneliness and surveillance. Despite global declines, U.S. customer loyalty has risen to 73%, attributed to brands leveraging AI and connected commerce for personalized engagement.

Key Takeaways

• OpenAI is developing a screen-free AI hardware device with Jony Ive, acquired through a $6.5 billion deal for his startup io, but faces delays beyond 2026 due to computing power, privacy, and AI personality challenges.
• OpenAI aims to transform ChatGPT into a platform for AI-driven commerce, enabling direct buying and selling.
• Google DeepMind's CodeMender AI agent automatically fixes software vulnerabilities, having submitted 72 patches to open-source projects.
• Datadog now offers over 1,000 integrations, including support for NVIDIA GPUs and AI models from OpenAI and Anthropic, enhancing AI observability.
• Applied Optoelectronics' stock surged nearly 21% due to optimism and deal-making in the AI sector.
• Visa has integrated over 100 AI applications internally and invested $3.5 billion in its AI platform, exploring agentic e-commerce.
• Filmmaker Josh Kerrigan uses AI tools like Midjourney and Runway to create sci-fi content, managing AI's limitations.
• Advertisements for the wearable AI companion pendant 'Friend' have faced significant backlash and vandalism in New York City.
• U.S. customer loyalty has increased to 73%, driven by brands using AI and connected commerce for personalized customer engagement.
• Nvidia's technology is being used for AI chips, contributing to market optimism.

OpenAI AI device with Jony Ive faces delays beyond 2026

OpenAI's planned AI hardware device, designed with Jony Ive, is reportedly delayed beyond 2026. Key challenges include privacy concerns, the need for significant computing power, and defining the AI's personality. CEO Sam Altman stated that the device is not expected soon. The device aims to be a helpful companion, distinct from current smartphones or smart glasses, and will be always on to build its memory. However, this raises privacy issues due to constant microphone and camera use. Insufficient compute power is also a major hurdle for OpenAI.

OpenAI buys Jony Ive's startup for $6.5B for new AI device

OpenAI has acquired Jony Ive's startup, io, for $6.5 billion in an all-stock deal to develop a new AI hardware device. This pocket-sized, screen-free gadget aims to be contextually aware and unobtrusive, potentially worn around the neck or placed on a desk. The device is envisioned as a 'third core device' beyond phones and laptops. However, significant technical challenges remain, including securing enough computing power and defining the AI's personality. The initial target launch was 2026, but these hurdles may cause delays.

Jony Ive's OpenAI AI hardware faces three major issues

Jony Ive's secretive AI hardware project with OpenAI is reportedly delayed due to three main problems. These include securing enough computing power, addressing significant privacy concerns from an always-on camera and microphone, and developing a suitable personality for the AI assistant. The device, which is not a phone or glasses, aims to be a new form factor for AI interaction. While Ive's team has developed many product ideas, solving these fundamental challenges is crucial for its launch.

OpenAI's dream AI gadget faces technical hurdles

OpenAI and Jony Ive are reportedly facing technical difficulties with their secretive AI device, potentially delaying its launch beyond next year. The palm-sized, screen-free gadget is designed to listen, watch, and respond to its surroundings. Key challenges include the immense computing power required, which OpenAI is struggling to secure, and defining the AI's personality to be helpful but not intrusive. Privacy concerns also arise from the device being 'always on' with active cameras and microphones. Despite these issues, OpenAI aims to create a device that feels more like a 'friend who's a computer' than existing smart speakers.

Jony Ive wants OpenAI devices to bring happiness

Jony Ive and Sam Altman discussed OpenAI's upcoming family of AI hardware devices at DevDay 2025. Ive hopes these devices will 'make us happy, and fulfilled, and more peaceful, and less anxious, and less disconnected.' The team has generated 15 to 20 compelling product ideas, aiming for a new computing form factor beyond phones and laptops. Altman acknowledged the difficulty of hardware development, suggesting it will take time. The devices might be screenless, using cameras and microphones, and could potentially launch around late 2026, though development has faced delays.

Google DeepMind's CodeMender fixes code vulnerabilities automatically

Google DeepMind has launched CodeMender, an AI agent that automatically finds and fixes software vulnerabilities. Over the past six months, CodeMender submitted 72 security patches to open-source projects, some with millions of lines of code. The tool uses Gemini Deep Think models to debug and fix complex security flaws, validating changes to prevent regressions. CodeMender can reactively patch new vulnerabilities and proactively rewrite existing code to eliminate entire classes of flaws. All patches are currently reviewed by human researchers before submission.

Google AI CodeMender fixes and rewrites vulnerable code

Google's DeepMind division has introduced CodeMender, an AI agent that automatically detects, patches, and rewrites vulnerable code. This tool is designed to be both reactive, fixing new vulnerabilities instantly, and proactive, rewriting existing code to eliminate entire classes of flaws. CodeMender has already submitted 72 security fixes to open-source projects over six months. It uses Google's Gemini models to address the root cause of problems and validate changes, ensuring they don't cause regressions. Human review is still required for all patches before they are submitted.

Asian markets rise in quiet trading; AI deals boost Wall Street

Asian shares saw modest gains in quiet holiday trading, while Japan's Nikkei 225 reached new record highs on hopes for government spending and tax cuts under its new prime minister. U.S. stock futures dipped slightly, and oil prices increased. Markets in China and South Korea were closed. Wall Street closed at more records, influenced by AI deals, including Nvidia's agreement to use its technology for AI chips. The S&P 500 and Nasdaq Composite saw slight increases.

Datadog reaches 1,000 integrations for AI observability

Datadog has announced it now offers over 1,000 integrations on its unified observability and security platform. This milestone signifies Datadog's broad coverage across cloud services, SaaS, security tools, and AI infrastructure, including NVIDIA GPU monitoring, vector databases, and large language models from OpenAI and Anthropic. This extensive integration allows for end-to-end visibility into complex technology stacks, including AI workloads. Customers like Forbes and partners like Google Cloud use Datadog to ensure reliability and transparency as new services and AI deployments emerge.

Applied Optoelectronics stock jumps 21% on AI deals

Applied Optoelectronics, Inc. (AAOI) experienced a significant stock increase of 20.98% on Monday, closing at $33.79 per share. This surge is attributed to the overall optimism surrounding the artificial intelligence sector, driven by a series of recent deal-making developments within the industry. The company's stock performance reflects the positive market sentiment towards AI-related businesses.

OpenAI's ChatGPT poised for AI-driven commerce

OpenAI is positioning ChatGPT to become a central platform for AI-driven commerce. The company has developed the necessary components for customers to buy and retailers to sell directly through ChatGPT. This evolution aims to revolutionize how consumers shop and businesses reach customers. By establishing ChatGPT as a commerce hub, OpenAI can tap into the growing market of AI-powered retail, offering a seamless experience for both buyers and sellers.

Filmmaker Josh Kerrigan uses AI to create unique sci-fi universe

Filmmaker Josh Kerrigan, known as Neural Viz, is using AI tools like FLUX Kontext, Midjourney, ElevenLabs, and Runway to create an expanding sci-fi universe. Despite AI's tendency to make errors and resist instructions, Kerrigan meticulously guides the process to generate original content. His work includes mockumentary series like 'Unanswered Oddities' and other shows within the 'Monoverse.' Neural Viz has gained a cult following for its unique vision and execution, demonstrating a path forward for AI filmmaking that avoids common pitfalls.

Friend AI companion ads spark backlash in NYC

Advertisements for Friend, a wearable AI companion pendant, have flooded the New York City subway system, sparking significant backlash and vandalism. The ads, costing less than $1 million, promote the $129 pendant as a friend that listens. Many New Yorkers have defaced the ads, viewing them as profiting from loneliness and contributing to surveillance concerns. Founder Avi Schiffmann sees the vandalism as a sign of the campaign's impact, comparing the AI companion to other forms of companionship like pets or children.

AI and omnichannel strategies boost US customer loyalty

New research from SAP Emarsys shows that U.S. customer loyalty has increased to 73%, defying a global decline. This trend is linked to brands using artificial intelligence (AI) and connected commerce systems for data-driven personalization and real-time engagement. Companies integrating customer data across platforms can better anticipate behavior and offer tailored promotions. In B2B markets, 'adaptive loyalty' is key, focusing on responsiveness and reliability alongside price, as many decision-makers have switched suppliers due to cost pressures.

Visa integrates AI across its business, treating it as science and art

Visa has deeply integrated artificial intelligence into its operations, earning recognition for its AI maturity. The company has developed over 100 internal AI-powered applications and employs more than 2,500 engineers focused on AI. Visa has been developing AI strategies for a decade, rewriting its data platform and embracing generative AI early on. The company balances the science of AI models with the art of governance, investing $3.5 billion in its AI platform to ensure safety and control. Visa is also developing agentic AI capabilities for 'agentic e-commerce,' allowing AI tools to make purchases on behalf of customers.

Sources

• OpenAI’s Jony Ive AI device delayed beyond 2026 over privacy, compute, and personality issues — Sam Altman says, "Do not expect anything very soon."
• OpenAI Acquires Jony Ive’s Startup for $6.5B to Build Screen-Free AI Device
• Jony Ive's secretive AI hardware reportedly hit three problems
• Ive and Altman struggle to make OpenAI’s dream gadget work
• Jony Ive Says He Wants His OpenAI Devices to ‘Make Us Happy’
• Google DeepMind launches an AI agent to fix code vulnerabilities automatically
• Google's New AI Doesn't Just Find Vulnerabilities — It Rewrites Code to Patch Them
• Asian markets mostly higher in quiet holiday trading after AI deals push Wall St to more records
• Datadog surpasses 1,000 integrations, boosting AI observability
• Applied Optoelectroncis (AAOI) Climbs 21% on AI Deals
• OpenAI and the race for AI-driven commerce
• The Future of AI Filmmaking Is a Parody of the Apocalypse, Made by a Guy Named Josh
• A.I. Companion Ads for Friend.com Flood NYC Subway, Fueling Backlash and Vandalism
• AI, omnichannel strategies boost U.S. customer loyalty
• How Visa wove AI into every facet of the company by approaching it as both a science and an art