In this photo illustration, the Luxshare Precision company logo is seen displayed on a smartphone screen.
Shenzhen-listed Luxshare saw its shares jump about 10% on Monday, following a report that the Chinese device assembler had signed a deal with OpenAI to produce a consumer AI device.
The company, which is also a supplier for Apple , is already developing a prototype of the device using ChatGPT large language models, The Information reported Friday, citing people familiar with the matter.
One source said that one of the products OpenAI has talked to suppliers about making would resemble a smart speaker without a display, which could put it in competition with Apple devices using Siri, with the company targeting late 2026 or early 2027 for its first device launches.
Luxshare's 10% jump brought its year-to-date gains to about 50%. Most stocks on the Shenzhen Stock Exchange aren't allowed to trade up or down more than 10% in a single day, relative to the previous day's closing price. The company is also reportedly considering a secondary listing in Hong Kong this year.
Luxshare and OpenAI did not immediately respond to CNBC's requests for comment.