A device trying to duplicate a part of smartphone/smartwatch functionality is doomed to fail, as those can easily just be an app on said devices.
So the computation part is likely out of the question. Input/output remains, and there is really not much you can innovate here.
Smartglasses? EarPod clones?
OpenAI wants to get into the hardware business, so they came up with something. Is it going to be something people actually want? I am skeptical, but as a consumer it's cool that so companies are trying out various new devices even if most of them are no good.
They can accept that building a smartphone is doomed to fail, and they want to build some hardware, so they're experimenting with all the "not a smartphone" form factors they can think of to see what sticks.
(Wrote a brief note about it here: https://zero2data.substack.com/p/openai-policy-and-privacy)
I'm sure it's going to be a smashing success 20 years later.
(Please don't look at our $60B a year burn rate financials.)