A small San Francisco startup known for making well-appointed, beautifully designed webcams is now vying to become the AI hardware company of the moment.
Opal Camera is rebranding to Opal Electronics and will expand its product portfolio beyond webcams to a broad range of consumer devices, some of which will be AI-focused. It aims to emulate Sony Electronics as a wide-ranging consumer gadget brand by focusing on design and culture, not just tech.
The transition was possible thanks to a $40 million Series B funding round from OpenAI. Some details about the investment were first reported in 2024, but the deal was closed in the first quarter of 2025. Other investors in Opal include Samsung, Peter Thiel, Seven Seven Six (Alexis Ohanian’s venture capital firm), and noted tech YouTuber Marques Brownlee (known as MKBHD), among others, according to a source close to the deal. Opal is now valued at around $275 million.
Opal Electronics declined to comment. OpenAI did not respond to WIRED’s request for comment.
OpenAI CEO Sam Altman was an early customer and fan of Opal’s original C1 webcam, so much so that his team visited Opal’s offices in 2022 to ask whether OpenAI’s Whisper voice transcription model could run locally on Opal cameras for live subtitles on Zoom. The source, who asked to remain anonymous because they are not authorized to speak publicly about the matter, says it was at the end of this meeting that OpenAI showed the Opal team a preview of ChatGPT. It made such an impact on the attendees that the company decided to turn into a research lab.
Since then, Opal has been working on an AI-powered audio product for the last few years. This, in turn, is the product that convinced Altman to invest in Opal. It will launch in the next three to four months and is currently being tested by Altman, researchers at OpenAI, and by executives at xAI, Thinking Machines, and Anthropic. It’s unclear whether it’s a wearable, though the source says it’s a familiar product category, and that it’s not designed to compete with the iPhone.
OpenAI famously teamed up with ex-iPhone designer Jony Ive and his firm, LoveFrom, to explore personal hardware devices that would run ChatGPT and OpenAI’s other software. It’s not clear yet what the exact hardware strategy is for OpenAI, but its first product is rumored to be something akin to a smart speaker, with an expected launch date of early 2027.
Opal’s audio product will launch in partnership with a specific AI lab—the source was unable to specify which—but Opal is in talks with OpenAI, Anthropic, and xAI, allowing users to switch models to their preference. Opal Electronics plans to release two other products in the next 12 months.
Courtesy of Opal Electronics