Leaks suggest OpenAI's first hardware device will be an audio wearable similar to AirPods. By choosing a form factor with proven product-market fit and a massive existing market ($20B+ for Apple), OpenAI is strategically de-risking its hardware entry and aiming for mass adoption from day one.

Square's product development is guided by the principle that "a seller should never outgrow Square." This forces them to build a platform that serves businesses from their first sale at a farmer's market all the way to operating in a large stadium, continuously adding capabilities to manage growing complexity.

Startups can beat incumbents like Amazon and Apple in the smart speaker market by using an open-source strategy. Building on common hardware like Raspberry Pi and fostering a developer community enables rapid innovation and integrations that closed ecosystems can't match.

The true challenge for the rumored OpenAI hardware isn't production, but breaking through Apple's powerful ecosystem effects, particularly iMessage integration. User adoption of a new, screenless form factor is another major, unsolved problem that has stumped previous startups.

When Amazon attacked Square with a cheaper clone, they failed because they only copied surface-level features. Square had built a deep, interconnected "stack" of 14 non-obvious innovations out of necessity, creating a powerful, invisible moat that Amazon couldn't replicate.

To get rule changes from giants like Visa and MasterCard, Square didn't fight them. Instead, they showed how their technology would bring millions of new, smaller merchants onto the credit card network—a market the incumbents' existing system was too expensive and complex to reach.

Apple's acquisition of audio AI startup Q.AI, like its PrimeSense purchase for Face ID, is about accelerating its hardware ecosystem (AirPods, iPhones). They integrate technology to enhance their existing products rather than acquiring standalone businesses for revenue.

Ben Thompson posits that Apple's platform restrictions on iOS were a blessing in disguise for Facebook. Prevented from building a true platform, Facebook was forced to double down on being an app, leading to the perfection of its highly lucrative, full-screen advertising model.

To serve its largest customers, Square's open platform is crucial. It allows enterprises to integrate their preferred third-party tools with Square's core services. This flexibility prevents churn by allowing customers to customize their tech stack instead of being locked into a closed ecosystem.