OpenAI accelerates AI smartphone development with customized MediaTek chip, targeting 2027 launch

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 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.

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 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.