Why Big Tech is Racing to Build the Perfect AI Device

Virtually all the largest tech companies (Google, Apple, Microsoft, Meta, Amazon, and OpenAI) are fiercely competing to bring an AI-centric device into consumers’ hands as soon as possible. This race is not just about producing flashy hardware. Instead, it’s a strategic effort to define the next computing era.

Traditionally, PCs and smartphones have dominated our digital lives. But amid the emergence and dominance of AI, tech giants are now aiming to imbue devices with true intelligence to better equip them to guide contextually, anticipate tasks, and reduce screen dependency.

OpenAI’s recent acquisition of Jony Ive’s hardware startup io signalled its push for a “third‑core” device that is neither phone nor glasses, but an ambient AI agent that interacts with users in new ways. In the meantime, speculations about its form range from pendant‑like assistants to minimal desk companions.

In the same vein, Snap’s upcoming “Specs” (smart glasses powered by Snapdragon and AI platforms like OpenAI’s GPT models) points to how AR wearables could revolutionise visual computing beyond phones.

AI as the New OS

Underpinning this race is a shift towards what industry insiders are calling “hardware‑software‑services ecosystems,” where AI is the connective tissue rather than a mere feature.

Samsung’s Galaxy AI, integrated across its S24/S25 phones and wearables, already offers on‑device translation, image editing, and conversational AI, thus foreshadowing AI where it matters most. Apple, similarly, introduced “Apple Intelligence” during WWDC 2024, a suite of on‑device foundation models that respect user privacy while enabling powerful capabilities.

Delivering this vision requires immense backend muscle, which is why tech behemoths have been busy constructing AI superclusters with tens of thousands of Nvidia GPUs to train models faster than rivals. Google recently deployed its 7th‑generation TPU “Ironwood” chips, offering dramatic performance scaling for AI workloads.

Even chipmakers like Huawei are innovating with multi‑chiplet designs to compete with Nvidia’s GPUs. This highlights the global stakes of AI hardware leadership.

Strategic Power & Sovereignty

Beyond commercial ambition lies geopolitical weight. Nations view AI devices and infrastructure as key to sovereignty, data control, and digital influence. This explains the long-standing rivalry between the US and China regarding AI chip supply chains. Even EU leaders are increasingly investing in sovereign AI infrastructure to minimise dependency on U.S. giants.

Also, at the core is the quest for Artificial General Intelligence (AGI). Big Tech sees AGI not just as software, but as a form‑factor evolution, where devices embody intelligence natively, creating deeper user intimacy and brand stickiness.

OpenAI’s bold hardware investment is a declaration: AI needs its own device, its own channel to the user.

Market Dynamics & Differentiation

Critics argue that without killer apps, AI devices risk being incremental rather than revolutionary. Yet tech giants are betting that seamless cross‑platform AI woven into hardware, software, and cloud services will reshape consumer expectations.

Meanwhile, as Google and Meta roll out advanced AI assistants and wearables, Apple is under scrutiny for its AI lag. At WWDC 2025, Apple delayed major Siri upgrades, causing a dip in its stock and sparking fears it’s falling behind.

These missteps accelerate pressure to catch up. With OpenAI and former Apple talent converging on innovative designs, Apple’s ecosystem dominance may be challenged by devices that look and feel entirely different.

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