Opal Electronics, a San Francisco-based startup, is pivoting from webcams to a broader range of consumer devices, including AI-focused products. The company, formerly known as Opal Camera, aims to become a major player in the consumer gadget market by emphasizing design and culture over pure technology. This shift is supported by a $40 million Series B funding round from OpenAI, which was finalized in the first quarter of 2025. Other investors include Samsung, Peter Thiel, and tech YouTuber Marques Brownlee, according to a source close to the deal. Opal is now valued at around $275 million.
The partnership with OpenAI began when CEO Sam Altman, an early customer of Opal's original C1 webcam, expressed interest in running OpenAI's Whisper model locally on Opal cameras for live subtitles on Zoom. During a meeting in 2022, OpenAI showcased a preview of ChatGPT, which led Opal to pivot toward AI research. Since then, the company has been developing an AI-powered audio product, which convinced Altman to invest. The product, currently in testing with OpenAI researchers and executives at xAI and Anthropic, is set to launch in the next three to four months. It is unclear whether it will be a wearable device, though the source described it as a familiar product category.
Opal's strategy includes launching its audio product in partnership with a specific AI lab, though the identity remains undisclosed. The company is also in talks with OpenAI, Anthropic, and xAI to allow users to switch between models. Opal plans to release two additional products within the next 12 months. On its website, Opal highlights its commitment to remaining a small company and releasing 3D drawings and manufacturing plans to the public domain when its products reach the end of their life. OpenAI is the largest shareholder in Opal but does not hold rights to its intellectual property or designs.
Source: wired