Shares of Luxshare Precision Industry Co., a Chinese electronics assembler known for its work with Apple products, jumped by about 10% Monday following reports that it has secured a deal with OpenAI to develop a new hardware device. The announcement has stirred investor interest, as Luxshare is viewed as a go-between for major manufacturing scale and the emerging AI hardware wave.

According to sources familiar with the matter, the device is in prototype stage and is intended to be pocket-sized, context-aware, and tightly integrated with OpenAI’s AI models. Luxshare brings its large-scale manufacturing expertise to the project; the deal mirrors OpenAI’s broader push into hardware after its acquisition earlier this year of io Products, the startup co-founded by designer Jony Ive.

Investors have reacted positively, betting that if the deal becomes concrete, Luxshare could reduce its dependency on Apple and gain a stronger foothold in the AI hardware supply chain. Analysts see both opportunity and risk: AI devices are costly to develop, require long-term supply chain commitments, and competition is fierce.

Luxshare’s move comes amid increasing signs that OpenAI is recruiting former Apple talent, collaborating with Apple suppliers such as Goertek and Luxshare to build components (like speaker modules) or entire devices. Some reports suggest the first product could be something akin to a smart speaker or an AI assistant gadget, possibly launching in late 2026 or early 2027.

The market reaction reflects both excitement and caution. While a ~10% jump in share price demonstrates investor optimism, Luxshare will need to navigate production logistics, component sourcing, design trade-offs, regulatory oversight, and rigorous competition in both hardware design and supply chain execution. For now, the details remain tentative, and both companies have not commented publicly.