The OpenAI fund has taken the lead in a $60 million B-round financing for hardware startup Opal, according to reports from The information. Other investors in this round include YouTuber Casey Neistat, TikTok stars Charli and Dixie D’Amelio, as well as existing investors such as Founders Fund and Kindred Ventures. The news has sparked a significant amount of interest in the AI hardware space.
OpenAI’s Interest in AI Hardware
OpenAI’s CEO, Sam Altman, has long shown an interest in creating AI hardware for consumers, inspired by devices depicted in movies like Spike Jonze’s Her. The investment in Opal, previously known as Opal Camera, reflects this interest. Although Opal has previously focused on producing and selling $300 network camera devices, which may not seem directly aligned with the direction of AI giants, the company now plans to develop other types of hardware devices driven by OpenAI’s AI models.
Opal’s Vision and Team
Opal, founded in 2020 and headquartered in California, USA, is committed to developing professional network cameras with the quality of digital single-lens reflex cameras. The company has rewritten camera firmware and released a new software application called Opal Composer. The team behind Opal is strong, with co-founders Veeraj Chugh and Stefan Sohlstrom coming from large tech companies like Uber and Google. Kenny Sweet, responsible for design, has worked on products including Beats Pro, Google Pixel Buds, and Dell laptops.
The Investment and Opal’s Future
In October 2023, Opal completed an A-round of $17 million in funding, with investors including Founders Fund, Kindred Ventures, Slack Fund, and Eighty-Seven Capital. This latest investment from OpenAI’s fund adds to the company’s growth momentum. According to sources, Opal’s vision is to develop devices that individuals can use as creative tools, rather than AI-driven companions or partners.
Collaboration with OpenAI
Opal plans to closely collaborate with OpenAI researchers to create prototypes for various device concepts, similar to a research lab. This collaboration has the potential to lead to innovative applications of AI technology in physical devices. For instance, the technology could power intercom-like devices on office desks, facilitating brainstorming, research, or creative writing projects.
OpenAI’s Continued Focus on AI Hardware
This investment in Opal follows OpenAI’s recent reactivation of its robotics team, which was dissolved four years ago. The company has also partnered with startups like Figure and 1X Technologies, which develop humanoid robots. Additionally, Altman has personally invested in Humane and Ive devices, which may look like headphones with cameras. However, it’s important to note that the Opal-OpenAI transaction is not related to the Altman-Ive devices.
Challenges and Opportunities in AI Hardware
Despite the potential of AI hardware, there are challenges to overcome. Other startups have faced setbacks in developing AI devices. For example, Humane considered selling itself after receiving negative reviews and poor sales performance, while AI personal device developer Rabbit has struggled due to the large size of existing large models, which cannot run entirely on devices. This leads to slow performance, short battery life, and a need for a continuous internet connection.
Conclusion
OpenAI’s investment in Opal demonstrates the company’s growing interest in how AI technology can power physical devices. With a strong team, innovative technology, and a clear vision, Opal could be at the forefront of the AI hardware revolution. As AI continues to evolve, it will be exciting to see how companies like Opal leverage this technology to create new and innovative products for consumers.
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