OpenAI's collaboration with designer Jony Ive to create an innovative AI gadget is facing significant delays due to technical and design challenges. The project, valued at approximately $6.5 billion, aims to produce a palm-sized, screenless device powered entirely by audio and visual cues. Key hurdles include insufficient computing power compared to rivals like Amazon and Google, and complexities in developing an engaging user experience. Insiders now question the previously anticipated 2026 launch timeline.