OpenAI fast-tracks AI phone with customized chip, aiming for 30 million shipments by 2028

OpenAI is reportedly launching a phone for ChatGPT

OpenAI's first hardware product might be a phone instead of a mysterious Jony Ive gadget. As reported by MacRumors, supply chain analyst Ming-Chi Kuo shared details about the rumored phone, claiming OpenAI is "fast-tracking" it and aiming to start mass production in early 2027. According to Kuo, the phone will run on a "customized version of the [MediaTek] Dimensity 9600," which is expected to launch this fall and follow up the Dimensity 9500 currently powering phones like the Vivo X300 Pro and the Oppo Find X9 Pro. The custom chip's "headline spec" will be its image signal processor (ISP), which will have "enhanced HDR" that Kuo says will improve the phone's real-world visual sensing capabilities. The OpenAI phone could also include LPDDR6 memory, UFS 5.0 storage, and a "dual-NPU architecture" for running different kinds of AI computation simultaneously, like language and vision tasks. Kuo also states that the phone's "combined 2027-2028 shipments could reach around 30 million units." That would put the OpenAI phone's sales near those of a typical Samsung flagship -- a lofty goal for the company's first hardware product.

OpenAI might be fast-tracking its AI phone with a powerful new MediaTek chip

The chip is said to prioritize AI and vision features, including a dual-NPU design, upgraded ISP for HDR sensing, and next-gen memory and storage. A few weeks ago, renowned TF International Securities analyst Ming-Chi Kuo revealed that OpenAI was exploring custom smartphone processors for a new AI-focused smartphone. Now, the analyst has posted an update indicating the company may be moving much faster than expected. According to Kuo, OpenAI is now targeting mass production of its first AI phone as early as the first half of 2027. That's a notable shift from Kuo's previous claims, pointing to a much later timeline. The analyst suggests the company appears to be accelerating development of the device to strengthen its position in the emerging AI agent device category and possibly to support a future IPO. Kuo also claims that MediaTek has now emerged as the leading candidate to supply the processor, potentially sidelining earlier mentions of Qualcomm. The chip itself is tipped to be a customized version of the rumored Dimensity 9600, reportedly built on TSMC's next-generation N2P process and expected to be revealed in the second half of 2026. Kuo notes that this updated chip will apparently focus on improving AI workloads rather than pure smartphone performance metrics. He claims that the ISP (image signal processor) will be the "headline" feature, with an enhanced HDR pipeline designed to improve visual understanding. That lines up with the idea of an AI-focused phone that can continuously look at and understand its surroundings. Elsewhere, Kuo notes that other specs include a dual-NPU architecture for handling different types of AI workloads more efficiently, alongside LPDDR6 RAM and UFS 5.0 storage. On the security side, features like pKVM (protected Kernel-based Virtual Machine) and inline hashing are said to be part of the design. These are data protection security features that many Android phones, like Google's Pixel devices, already implement. If the development of this rumored OpenAI phone stays on track, Kuo estimates that the combined shipments for 2027 and 2028 could reach around 30 million units. That's quite an ambitious target for a first-generation device from a company that has never made a phone before, especially in a category that doesn't fully exist yet. Meanwhile, OpenAI has said nothing about this phone or its plans to make one.

OpenAI's new phone being fast-tracked to launch next year, per report - 9to5Mac

Last week Ming-Chi Kuo broke the news that OpenAI's hardware ambitions now include a smartphone to directly compete with the iPhone. And a new update from Kuo suggests the company is moving even faster than anticipated to launch the first OpenAI phone. Ming-Chi Kuo, writing on X: OpenAI appears to be fast-tracking its first AI agent phone, with mass production targeted as early as 1H27. Potential drivers include supporting a year-end IPO narrative and intensifying competition in AI agent phones. MediaTek currently appears better positioned to become the sole processor supplier, with the device set to use a customized version of the Dimensity 9600, built on TSMC's N2P node in 2H26. The ISP is the headline spec, with an enhanced HDR pipeline improving real-world visual sensing. Other key specs include a dual-NPU architecture for heterogeneous AI compute, LPDDR6 + UFS 5.0 to ease memory bottlenecks, and pKVM + inline hashing for security. If development stays on track, combined 2027-2028 shipments could reach around 30 million units. If mass production of the OpenAI phone can happen in the first half of 2027, then a public launch in the fall would likely be the goal. Launching a smartphone next year sounds extremely ambitious. OpenAI has been working on hardware devices for a while, but the pivot to making a smartphone sounds very recent. OpenAI CEO Sam Altman has been hinting recently at the company's phone project. He said last week that now is the right time to "seriously rethink how operating systems and user interfaces are designed." The company has been working with longtime Apple design head Jony Ive on its suite of hardware devices. Ive has seemed reticent to revisit the smartphone. Instead, public comments have indicated he wants to undo some of the societal harm that smartphones have birthed with his next wave of hardware designs. But presumably Ive is heavily involved in OpenAI's phone project. Are you interested in an OpenAI smartphone, and do you think a 2027 launch is possible? Let us know in the comments.

OpenAI phone reportedly lands early next year - do you want one?

Apparently, OpenAI is speeding up development on its first smartphone which could now debut as soon as early next year. Do you have any interest? Last week, the idea of an OpenAI smartphone took one step closer to reality. Analyst Ming-Chi Kuo revealed that OpenAI was in the early stages of building a phone focused on the use of AI agents, but with an apparent 2028 goal in mind. Things are speeding up, Kuo now says. In a follow-up, Kuo revises the timeline and says that the first OpenAI phone could launch as soon as the first half of 2027. The device would be powered by a customized version of the MediaTek Dimensity 9600 that has an upgraded image signal processor to improve HDR output, while also having a dual-architecture NPU, LPDDR6 RAM, and UFS 5.0 storage. In other words, everything you'd need to power an AI-centric smartphone. "If development proceeds smoothly," Kuo expects around 30 million shipments in 2027 and 2028 combined - which seems ambitious. Personally, my question is still "why," as discussed in our latest edition of the 9to5Google Weekender. So, that's what we'd like to know from you. Would you want an OpenAI phone?

OpenAI reportedly fast tracking ChatGPT phone for 2027 launch -- and this is the 'headline spec'

OpenAI's first AI device could actually be a phone that launches sooner than you think. According to supply chain analyst Ming-Chi Kuo on X, Open is "fast-tracking" the development of its AI agent phone with mass production possibly kicking off in early 2027. Kuo also supplied a surprising number of specifications that could appear in the phone. In late April, Kuo claimed that OpenAI was working with both MediaTek and Qualcomm on processors for the AI phone. This new tweet indicates that OpenAI picked MediaTek as its sole silicon supplier. Specifically, he says the OpenAI phone could use a customized version of the Dimensity 9600 chip, built on TSMC's 2nm process. But the "headline spec" of the ChatGPT phone could be its image signal processor, which will feature an "enhanced HDR pipeline" that improves real-world sensing, meaning what the AI "sees" through the device's camera. Kuo alleges that the device will use two AI processors for handling different tasks. The ChatGPT phone should feature fast LPDDR6 memory and storage plus "pKVM" for security to isolate processes. As Kuo noted last month, "Only by fully controlling both the operating system and hardware can OpenAI deliver a comprehensive AI agent service." Kuo claims that starting in 2027, OpenAI could ship around 30 million devices. Where does this leave other OpenAI-built AI devices? Up to now, OpenAI has been rumored to be developing at least five other AI-powered devices, including earbuds, speakers, smart glasses, a smart pen and a Humane AI-esque pin. Late last year, CEO Sam Altman hyped mysterious AI hardware he described as a "third core device" that would live alongside your laptop and smartphone. It's supposed to be wearable and screen-free. The device is supposedly being designed by Jony Ive's design firm LoveFrom, which OpenAI acquired in May of 2025. However, the most recent rumors point to Ive's team developing a smart speaker a la Apple's HomePod. A hardware leak from January revealed the earbuds, which could arrive in September. OpenAI is rumored to be developing so many AI devices that it's not entirely clear which one is close to launch at this point. Our earliest guess is earbuds in September, followed by a phone in mid-2027. Follow Tom's Guide on Google News and add us as a preferred source to get our up-to-date news, analysis, and reviews in your feeds. Subscribe to Tom's Guide on YouTube and follow us on TikTok.

OpenAI Fast-Tracking AI Phone for 2027 Launch, Says Kuo

OpenAI is said to be fast-tracking development of its first "AI agent phone," with the company now aiming to mass produce the device as early as the first half of next year, according to industry analyst Ming-Chi Kuo. Late last month, Kuo revealed OpenAI's work on a smartphone, contradicting earlier reports that the company had no plans to enter the mobile market. Kuo said MediaTek and Qualcomm are the chosen chip partners and Luxshare Precision Industry is the exclusive manufacturing partner, with mass production scheduled for 2028. Reasons for Kuo's revised 1H27 production target are now said to include OpenAI's planned initial public offering (i.e. a compelling hardware product could strengthen its story to investors if it goes public) and intensifying competition in AI agent phones. Kuo says MediaTek appears "better positioned to become the sole processor supplier," with the device set to use a customized version of the Dimensity 9600, which will apparently be built on TSMC's N2P node in 2H26. The device's "headline spec" will allegedly be its image signal processor, featuring an enhanced HDR pipeline that improves real-world sensing - or what the AI "perceives" through the camera. The phone will also use two AI processors for handling different tasks (e.g. vision and language simultaneously), fast memory and storage, and security features to isolate processes. "If development stays on track, combined 2027-2028 shipments could reach around 30 million units," says Kuo, who argues that fully controlling both the operating system and the hardware is the only way for the company to deliver a comprehensive AI agent service. Kuo expects AI agents to change how people interact with a phone, shifting the focus from launching individual apps to completing tasks within a seamless context-aware interface. Quite where this leaves Jony Ive's non-phone AI device prototype isn't entirely clear. Shortly after its acquisition of Ive's startup io Products in May 2025, OpenAI engaged in something of a marketing blitz to promote Ive's first upcoming product for the company, describing it as a "third core device" after a MacBook Pro and an iPhone. According to OpenAI CEO Sam Altman, it would be the "coolest piece of technology that the world will have ever seen." And crucially, it wouldn't have a screen - because phones have screens, and Ive and Altman want to wean people off those. The original goal was to release the device later this year, but in November that roadmap got pushed back to "less than two years." The last we heard, Ive's first OpenAI device was revealed to be a smart speaker with a camera, set to come out in early 2027. Other OpenAI products reportedly in development include smart glasses, a smart lamp, and potentially earbuds, but the roadmap is supposed to be further out for those. If any of these devices eventually launch, OpenAI will become a direct hardware rival against several Apple product lines - Apple is rumored to be also working on smart glasses, AirPods with cameras, and an AI pendant, as well as a smart home hub with enhanced Siri capabilities.

OpenAI could launch its first AI agent smartphone in 2027

OpenAI could be preparing to enter the hardware space with its first AI-focused smartphone, according to TF Securities analyst Ming Chi Kuo. The device is said to be in active development, with mass production potentially targeted for the first half of 2027. While OpenAI has not officially confirmed these plans, supply chain insights by Kuo suggest the company is accelerating efforts to compete in the emerging category of AI agent-driven devices. A New Push Into AI Hardware The reported smartphone is expected to focus heavily on on-device AI capabilities rather than traditional smartphone features. This aligns with a broader industry trend where companies are moving toward "AI agent" devices - products designed to perform tasks, understand context, and interact more autonomously with users. One of the key details emerging from the report is OpenAI's potential partnership with MediaTek. The chipmaker is currently seen as the frontrunner to supply the device's processor, which could be based on a customised version of a future Dimensity chipset. The processor is expected to be manufactured using TSMC's next-generation process, indicating a focus on efficiency and performance. Specs Built Around AI Workloads Unlike conventional smartphones, this device is expected to prioritise AI-specific hardware. Reports point to a dual NPU (Neural Processing Unit) architecture, designed to handle layered AI tasks more efficiently. This could enable faster on-device processing for tasks like real-time language understanding, visual recognition, and contextual computing. Recommended Videos Other expected specifications include LPDDR6 RAM and UFS 5.0 storage, aimed at reducing memory bottlenecks that can limit AI performance. There is also mention of an enhanced image signal processor (ISP), which could improve high dynamic range output and support real-world visual perception - an important factor for AI systems that rely on camera input. Security is also expected to be a focus, with features like pKVM (protected Kernel-based Virtual Machine) and inline hashing designed to improve data integrity and device-level protection. Why OpenAI Is Pushing Into AI Smartphones Industry insights suggest OpenAI's move into smartphones is driven by the need to fully control both hardware and software to deliver a true AI agent experience. Unlike current devices that rely on apps, AI-first phones are expected to shift toward task-based interactions, where users focus on outcomes rather than navigating multiple applications. Smartphones also provide continuous real-time user context - such as location, activity, and usage patterns - which is critical for AI inference. Reports indicate OpenAI is working with MediaTek and Qualcomm on custom processors, with Luxshare as a key manufacturing partner, targeting mass production around 2028. The approach will likely combine on-device AI for real-time processing with cloud-based AI for more complex tasks. OpenAI's strengths in consumer reach, data, and AI models position it well to build a new ecosystem, potentially bundling hardware with subscription services while driving the next major smartphone upgrade cycle. OpenAI's potential entry into hardware reflects a shift in how AI companies are approaching product ecosystems. Instead of relying solely on software platforms, companies are exploring dedicated devices to better control performance, privacy, and user experience. The timing may also be strategic. Reports suggest that a hardware product could strengthen OpenAI's long-term positioning, particularly if the company is considering major financial milestones such as a future IPO. What It Means for Users and the Market If launched, the device could introduce a new category of smartphones centered around AI-first interactions. This may include more proactive assistance, improved real-time processing, and reduced reliance on cloud computing. For consumers, this could translate into faster responses, improved privacy, and more seamless integration of AI into daily tasks. For the industry, it signals intensifying competition, with more companies racing to define what an AI-native device should look like. What Comes Next If development stays on track, production could begin in late 2026, with shipments projected to reach around 30 million units across 2027 and 2028. However, timelines remain speculative, and much will depend on execution, partnerships, and market readiness. As AI continues to move closer to the device level, OpenAI's reported plans suggest that the next phase of competition may not just be about better models - but about the hardware that runs them.

OpenAI Is Reportedly Building an AI Phone -- And Taking Aim at the iPhone

"If development stays on track, combined 2027 to 2028 shipments could reach around 30 million units," Kuo claimed. Kuo is an analyst at TF International Securities who has built a reputation as the world's most accurate predictor of the tech industry's product plans. Business Insider has called him "the most accurate Apple analyst in the world," while news website BGR dubbed him "the industry's most reliable and well-connected Apple insider." Kuo's track record includes a reported 72.5% accuracy rate, according to Apple Track. He has recently started reporting on OpenAI, making predictions about the company's upcoming hardware devices based on his industry research. Late last month, Kuo reported through his supply chain checks that OpenAI is actively developing a smartphone, pushing back on earlier claims that the company had no interest in entering the mobile hardware market. The project is already taking shape with key partners in place: MediaTek and Qualcomm are expected to supply the chips, while Luxshare Precision Industry will handle manufacturing, according to Kuo. The AI phone will be a direct competitor to the iPhone. "OpenAI's advantages lie in its consumer brand, years of accumulated user data and leading AI models," Kuo wrote in a post on X last month. "Smartphone hardware is already highly mature, so OpenAI can work with the supply chain to develop the device." He wrote that smartphones are especially well-suited for AI because they continuously capture a user's real-time context. Phones capture everything from location and movement to communications and daily activity. He sees this stream of data as the most valuable input for AI systems that need to make fast decisions. AI will reshape how people use their phones, according to Kuo. Instead of navigating between separate apps, users will rely on AI to handle tasks on their behalf. Kuo initially said last month that OpenAI scheduled mass production of the AI phone for 2028, but he revised the timeline this week to early 2027. He pushed the timeline forward because having a tangible hardware product could strengthen OpenAI's pitch to investors if it goes public. There is also growing competition in the space when it comes to AI-focused smartphones, intensifying the pressure to introduce a device with novel capabilities. The AI phone's standout feature is reportedly its image processor, designed to improve how the camera captures and interprets real-world scenes for AI, per Kuo's report. He says it will also include dual AI chips to handle tasks like vision and language at the same time, along with high-speed memory, ample storage and built-in security features. OpenAI acquired io, an AI device startup founded by former Apple design chief Jony Ive, in May 2025, in an all-stock deal valued at $6.5 billion. The acquisition marked a major turning point in OpenAI's journey from pure software to AI hardware. The move brought 55 hardware, software and product specialists into OpenAI and created new roles for them focused on building AI devices. No other analysts have independently confirmed Kuo's predictions. OpenAI's plans are still a secret. Industry observers have speculated that the company's first hardware project could be anything from an AI-powered smart pen to AI earbuds. Other companies are also exploring AI hardware. Samsung, for example, has indicated that it is exploring making AI necklaces, earrings and other wearable devices, while Apple is reportedly developing an AI pendant.

OpenAI's AI Phone Could Arrive in Early 2027 With This MediaTek Chip

The AI-focused smartphone is tipped to run on a MediaTek Dimensity SoC OpenAI is said to be working on its own smartphone to compete with the likes of the iPhone. After leaking information about the handset a few days ago, TF International Securities analyst Ming-Chi Kuo has now revealed additional details about its development. OpenAI's in-house smartphone is said to undergo mass production next year, and the launch could happen sooner. This AI-focused smartphone is tipped to run on a MediaTek Dimensity chipset manufactured based on TSMC's N2P process. OpenAI Eyes Faster Launch for AI Phone In an X post on Tuesday, Kuo disclosed details about OpenAI's first AI phone. He claims that OpenAI appears to be fast-tracking its first AI agent phone, with mass production set to start as early as the first half of next year. Previously, the analyst suggested that the mass production of the OpenAI smartphone will begin in 2028, and the specifications and suppliers will be finalised by late this year or early next year. The faster schedule could be driven by plans to support OpenAI's year-end IPO narrative and growing competition in the AI agent phone space. Further, Kuo claims that MediaTek is likely to be the exclusive chip supplier of the OpenAI smartphone. The analyst previously said that Qualcomm is also under consideration for the chip supply for this device. The upcoming phone could run on a customised version of the MediaTek Dimensity 9600 chipset, manufactured using TSMC's N2P node in the second half of 2026. The image signal processor (ISP) featuring an upgraded HDR pipeline is said to be the key highlight of the chipset. Kuo also claims that it could include a dual-NPU architecture for heterogeneous AI processing, LPDDR6 memory paired with UFS 5.0 storage. It could offer pKVM (protected Kernel-based Virtual Machine) and inline hashing for security. The analyst predicts that if the development of the OpenAI phone proceeds as planned, total shipments across 2027 and 2028 could reach roughly 30 million units. While Kuo has a decent track record in terms of supply chain predictions, it's worth taking these claims with a grain of salt, as OpenAI has yet to announce plans to develop its own smartphone.

Would you buy an OpenAI phone? New rumours suggest that one day, you might | Stuff

The best smartphones haven't really changed much over the years. A faster screen here, a bigger camera bump there - the big upgrades are incremental, rather than mind-blowing. But new speculation surrounding an OpenAI phone might shake things up a bit. The latest reports stem from analyst Ming-Chi Kuo, who says that OpenAI is reportedly working with Qualcomm and MediaTek on a smartphone chipset, with manufacturing partner Luxshare also involved. In other words, this isn't a confirmed OpenAI phone project. But it's still early-stage work that could, in theory, evolve into one eventually. Both Qualcomm and MediaTek have been pushing the idea of agentic AI - assistants that don't just respond to commands, but actually carry out tasks across services. This kind of approach could sit at the centre of OpenAI's ambitions. If an OpenAI phone does end up launching, the big shift would be how you interact with it. Rather than jumping between apps, you might rely on an AI agent to handle things in the background - messaging people, booking services, pulling information together - all from a single prompt. While everything here is speculative at best, we do have a vague timeline for the underlying work. Kuo says that specifications and supplier details for the chipset could be finalised by late 2026 or early 2027, with mass production pencilled in for 2028. That alone suggests anything consumer-facing is still a long way off. Elsewhere, OpenAI has also been linked to a range of other hardware ideas, including earbuds and other AI-first devices, as well as a high-profile collaboration with former Apple designer Jony Ive. Whether any of that feeds into a future phone though, is up in the air.

OpenAI Eyes Consumer Hardware Leap With AI Agent Phone by 2027 - Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ

OpenAI is reportedly moving faster on plans to develop an AI agent smartphone that could enter mass production by 2027, marking a potential expansion from software into consumer hardware. AI Smartphone Push Gains Momentum Analyst Ming-Chi Kuo said in a post on X that OpenAI "may be accelerating the development of its first AI agent smartphone," with mass production targeted for the first half of 2027. He added that the move could be driven by "a favorable year-end IPO narrative" and rising competition in AI-focused devices. Kuo said MediaTek is "more likely to secure the exclusive processor order," with the device expected to use a customized Dimensity 9600 chip manufactured by TSMC using its advanced N2P process. He also pointed to expected hardware upgrades, including a dual NPU design for AI computing, faster LPDDR6 memory, UFS 5.0 storage and enhanced security features such as pKVM and inline hashing. "If development proceeds smoothly, shipments are projected to total approximately 30 million units in 2027 and 2028 combined," Kuo wrote. OpenAI AI Smartphone Aims To Replace Apps Last week, OpenAI was reportedly exploring an AI smartphone concept aimed at replacing app-based usage with a task-driven AI assistant. Kuo said that OpenAI was working with MediaTek, Qualcomm Inc. (NASDAQ:QCOM), and Luxshare on a potential "AI agent" smartphone expected for mass production as early as 2028. The report stated, "Users are not trying to use a pile of apps. They are trying to get tasks done and fulfill needs through the phone," highlighting the shift in device usage. It also noted that full control of hardware and software was seen as key to delivering a complete AI agent experience. OpenAI Hardware Shift Earlier, OpenAI was reportedly shifting its first AI hardware project to Foxconn Technology Group, moving production from Luxshare due to supply-chain concerns. The "Gumdrop" device was expected to be assembled in Vietnam or the U.S. and could launch in 2026 or 2027. The move was seen as part of a broader push into video AI, though it could increase chatbot usage and costs. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

OpenAI Picks MediaTek Over Qualcomm For Its First Smartphone, Customizing The Dimensity 9600 With A Dual-NPU Architecture To Challenge The iPhone

OpenAI appears to be fast-tracking its plans for an AI-enabled smartphone, partially in a bid to bolster its IPO that might land as soon as this year. And, in its urgency, OpenAI appears to be settling on a customized version of MediaTek's upcoming flagship Dimensity 9600 chip as the SoC of choice for the planned smartphone. The famous analyst Ming-Chi Kuo revealed towards the end of April that OpenAI had relegated its planned range of consumer devices to the proverbial cryo unit for now, focusing its efforts instead on an AI-powered smartphone. At the time, Kuo had indicated that OpenAI was already working with Qualcomm and MediaTek on a dedicated smartphone processor, with Luxshare likely to serve as the key assembler of the smartphone that appears poised to challenge the dominance of the Apple iPhone. According to OpenAI's vision of its planned smartphone, users would rely on real-time AI agent inference using a combination of on-device and cloud-based models, rather than individual apps, to perform a variety of productivity tasks. Under OpenAI's vision, the smartphone's hardware will power the collection of a given user's "full real-time state," deal with memory hierarchy management, and furnish the requisite computing power for on-device inference, with complex tasks offloaded to the cloud for further processing. Now, however, Ming-Chi Kuo has issued a critical update to his late-April disclosure, reporting that OpenAI appears to have settled on a customized version of MediaTek's upcoming Dimensity 9600 chip as the SoC of choice for its planned smartphone. Do note that MediaTek is set to debut two versions of its Dimensity 9600 chip later this year: vanilla and Pro. It is as yet unclear whether OpenAI is leaning towards the former or the latter. For the benefit of those who might not be aware, the Dimensity 9600 chip will leverage TSMC's N2P node. Moreover, the Pro version is expected to sport 2x ARM C2-Ultra cores (clocked at around 5GHz), 3x ARM C2-Premium cores, and 3x ARM C2-Pro cores, emulating the 2+3+3 CPU architecture of Qualcomm's upcoming Snapdragon 8 Elite Gen 6 chip. While the vanilla version is expected to sport the Mali-G2 Ultra GPU, the Dimensity 9600 Pro is expected to go with an ARM Magni GPU. Of course, this remains subject to change. Coming back, Kuo asserts that OpenAI's customized version of the Dimensity 9600 chip will sport an improved ISP, one that features an enhanced HDR pipeline for real-world visual sensing. It will also sport a "a dual-NPU architecture for heterogeneous AI compute, LPDDR6 + UFS 5.0 to ease memory bottlenecks, and pKVM + inline hashing for security." Finally, Kuo believes OpenAI can sell around 30 million units of its new smartphone between 2027 and 2028 if development remains on track.

OpenAI custom AI agent smartphone could launch in 2027

OpenAI is accelerating the development of its first proprietary "AI agent phone," according to a recent industry update from prominent supply chain analyst Ming-Chi Kuo. The device is reportedly targeting mass production as early as the first half of 2027 (1H27). This strategic hardware initiative appears to be driven by two primary factors: the need to bolster a potential year-end Initial Public Offering (IPO) narrative and the desire to establish a foothold amid intensifying competition in the emerging AI hardware market. To power the device, OpenAI is reportedly turning to MediaTek. Kuo's supply chain checks indicate that MediaTek is currently positioned to be the sole processor supplier for the smartphone. The device is expected to feature a customized iteration of MediaTek's Dimensity 9600 chipset. This silicon will be manufactured using TSMC's advanced N2P process node, with chip production scheduled for the second half of 2026 (2H26) ahead of the phone's 2027 launch. The report outlines several specialized hardware specifications designed specifically to support on-device artificial intelligence and agentic workflows. Core hardware details include: If OpenAI and its hardware partners can maintain the current development trajectory without significant delays, Kuo estimates substantial volume for the initial release. Combined shipment forecasts for the AI agent phone are projected to reach approximately 30 million units across the 2027 and 2028 calendar years.

OpenAI AI smartphone may launch sooner than expected, mass production tipped for 2027

Could be positioned as part of a broader ecosystem strategy ahead of a potential IPO. We already know that OpenAI is working on a new smartphone and quite a different one to rival Apple, Samsung, and other brands. Now the latest hint suggests that it may launch sooner than expected. According to recent analyst insights, the company is working on what is being described as an AI agent phone, a device that is designed to rely heavily on AI to complete tasks, rather than traditional app-based navigation. Unlike conventional smartphones, where users switch between many applications, the reported device would use AI agents to handle actions such as communication, scheduling, and information retrieval. With this, the company may want to make interactions better with AI acting as the primary interface. Analyst Ming-Chi Kuo stated that OpenAI stated that the Sam Altman-led AI company is accelerating development of this device, with mass production potentially starting in the second half of 2027. The push may be partly strategic as the company is also reportedly preparing for an initial public offering (IPO), and a hardware product could strengthen its long-term growth narrative for the investors. Also read: Window AC vs desert air cooler: Price, electricity consumption and more things compared On the hardware side, the report suggests that OpenAI has explored partnerships with chipmakers like Qualcomm and MediaTek, with MediaTek likely emerging as the primary supplier. As per the report, the device may be based on the Dimensity 9600 platform and manufactured using TSMC's advanced 2nm-class process. Adding on, the reports also suggest that the device may naturally collect contextual data such as location, communication patterns, and daily activity, which can improve the overall AI performance. The company also explores subscription-based services with devices, potentially creating a new ecosystem around AI-driven interactions. If these updates are true, the company will be introducing the device to the market by the end of 2027 or in 2028. However, it must be noted that the company has not officially announced the plans to launch a smartphone yet.