Sam Altman: Current Computers Are Not Designed for AI

In a podcast, Sam said current hardware is not able to keep up with changing and increasing AI demands. “Now, we’re in a different world, and what you want out of hardware and software is changing quite rapidly,” he said.

In a captivating recent podcast with his brother, Jack Altman, OpenAI CEO Sam Altman boldly declared that our current computers are ill-equipped to meet the soaring demands of artificial intelligence (AI).

This marks a striking shift from his earlier belief that artificial general intelligence (AGI) could thrive without new hardware. Sam asserted that traditional hardware simply cannot keep up with the rapid evolution of AI technology. 

“We now find ourselves in a new era,” he stated, “and the expectations for what hardware and software can accomplish are changing at an astonishing pace.” His remarks challenge the previous notion that AI advancements could solely rely on software improvements without the need for revolutionary hardware. 

Once, Sam confidently claimed that smartphones were “extraordinarily more than capable” of handling AI tasks; however, he acknowledged that consumers would still eagerly embrace new devices.

Additionally, Sam has been unveiling plans for a groundbreaking AI companion device, envisioned to be pocket-sized, screen-free, and acutely aware of its surroundings—a far cry from conventional wearables. 

This concept is part of the company’s partnership with famous designer Jony Ive. Ive worked with Apple as their design chief. Now, the company wants to come up with a unique product that can give them a new dimension in the hardware market.

The company is designing AI-specific hardware, which has been confirmed by the CEO in interviews and court filings. They may even consider producing their own range of custom chips in the near future. 

It is a departure from the usage of standard servers and GPUs. However, the plan faced some legal issues in the month of June 2025, when a federal judge stopped their marketing efforts. However, they are pursuing their purchase of io Products, a product and engineering company that was co-founded by Ive.

This will be done in a deal at nearly $6.5 billion. Unfortunately, this deal too is facing its own set of legal hurdles as well from a company which is into the development of AI hardware. But the path looks exciting and complicated, as Altman and Ive navigate these challenges to usher in a new era of AI technology.