OpenAI builds AI smartphone with Qualcomm and MediaTek, targeting mass production by 2028

OpenAI could be making a phone with AI agents replacing apps | TechCrunch

There have been plenty of rumors about OpenAI's hardware plans, which involve launching a pair of earbuds. A new note from industry analyst Ming-Chi Kuo suggests that the AI company might be working on a phone in collaboration with MediaTek, Qualcomm, and Luxshare. Kuo, who has reported on several Apple hardware plans in the past, said that OpenAI would develop a smartphone chip with MediaTek and Qualcomm, with Luxshare acting as a co-design and manufacturing partner. The analyst's note also suggests that instead of apps, the smartphone could rely on AI agents to complete different tasks. Currently, Apple and Google control the app pipeline and the type of system access they get, restricting some of their functions. Kuo suggests that by creating its own smartphone and hardware stack, OpenAI would be able to use AI in all kinds of features without restrictions. With ChatGPT nearing a billion weekly users, a hardware product for daily use could also bode well for OpenAI's ambition to reach more consumers. This thinking is not restricted to OpenAI. Vibe coding app makers are predicting a future that doesn't involve apps. Nothing CEO Carl Pei said at SXSW that apps will eventually go away. Kuo believes that OpenAI's smartphone would be designed to continuously understand users' context. By offering the phone itself, the company could gain access to more data about users' habits than an app on the phone could. He also said that the company will work on a mixture of small on-device models and cloud models to handle different types of requests and tasks. The analyst said the smartphone's specifications and its component suppliers are expected to be finalized by the year-end or by the first quarter of 2027, with mass production of the device expected to start in 2028. Earlier this year, OpenAI Chief Global Affairs Officer Chris Lehane said that the company is on track to announce its first hardware product in the second half of 2026. Several reports at that time indicated that the device could be uniquely designed earbuds. OpenAI didn't comment on the story at the time of writing.

OpenAI's Rumored Phone Would Replace Apps With AI Agents

Macy has been working for CNET for coming on 2 years. Prior to CNET, Macy received a North Carolina College Media Association award in sports writing. OpenAI has long been interested in getting into the hardware business. So far, the company behind ChatGPT has been linked to wearables, working on launching AI earbuds later this year or early 2027. But industry analyst Ming-Chi Kuo reported on X over the weekend that OpenAI is working on building a smartphone in partnership with component-makers MediaTek, Qualcomm and Luxshare. Kuo said MediaTek and Qualcomm would help design a smartphone chip for the device, while Luxshare would act as a co-design and manufacturing partner. Most premium Android phones coming out in 2026 will use either Qualcomm's Snapdragon 8 Elite Gen 5 or MediaTek's Dimensity 9500 chips, so it makes sense for OpenAI to tap the companies making processors for most of the top-end phones that come out every year. For years, both MediaTek and Qualcomm have envisioned AI agents as the future of how people will use their phones, which would handle tasks across multiple apps for you. AI agents would be at the core of OpenAI's smartphone, Kuo said, effectively eliminating the need for separate apps. "Users are not trying to use a pile of apps," Kuo said. "They are trying to get tasks done and fulfill needs through the phone. This fundamentally changes how people think about smartphones." OpenAI's hardware ambitions have included a high-profile partnership with former Apple designer Jony Ive. One recent rumor was that the devices could include one worn in the ear, but that OpenAI could have as many as five different devices ready by the end of 2028. At the same time, OpenAI has been reportedly trying to cut down on so-called "side quests," axing its Sora video generator and putting a planned ChatGPT "adult mode" on hiatus in favor of a more productivity-focused "super app" said to be built around the Codex coding tool. Read also: ChatGPT Images 2: Why OpenAI Built a New Image Model After Killing Sora Kuo reported that specifications and suppliers for the rumored smartphone are expected to be done by the end of the year or the first quarter of 2027, with production expected in 2028. OpenAI did not immediately respond to a request for comment. (Disclosure: Ziff Davis, CNET's parent company, in April 2025 filed a lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.)

Would You Want a ChatGPT Phone? Report Says OpenAI Considers Mobile Chipset

OpenAI is open about working on gadgets to make accessing ChatGPT easier, but a new report says it is considering developing its own smartphone tech. Analyst Ming-Chi Kuo, who works at TF International Securities, claims OpenAI is working with both MediaTek and Qualcomm on developing a phone processor. This comes after the brand confirmed a deal with Broadcom last year to develop custom AI-accelerator technology. Kuo's report says that OpenAI is working with both companies, with a production aim for 2028. It won't be until the end of this year or early 2027 that anything is finalized, according to the sources. This is the first report indicating that OpenAI may be considering working on mobile silicon or broader smartphone tech. OpenAI has previously suggested it would create other consumer hardware, not a smartphone, for its first gadgets. A court order in February hinted that OpenAI's first gadgets likely won't launch until early 2027, and we still don't know what they may be. Other sources have previously reported that OpenAI may start with a screenless device sitting on a nearby desk, rather than a wearable or pocketable device. Kuo's report suggests that smartphone design is where OpenAI believes it could revolutionize how we interact with portable devices. For example, Kuo explains that integrating an AI assistant with a chip from the same company may allow it to redesign software as a stream of behavior, and break away from using individual apps with all functionality handled by a single chatbot. Kuo says, "The phone needs to continuously understand the user's context. Power consumption, memory hierarchy management, and basic small-model execution will be key processor design considerations." Speaking on its previous deal with Broadcom on enterprise tech, OpenAI said, "By designing its own chips and systems, OpenAI can embed what it's learned from developing frontier models and products directly into the hardware, unlocking new levels of capability and intelligence." It may be that the brand is reapplying that same logic to the world of phones through this rumored plan. OpenAI, MediaTek, and Qualcomm have yet to officially comment on the report, and it's unlikely we'll hear anything firm until each is ready to make a deal public. Disclosure: Ziff Davis, PCMag's parent company, filed a lawsuit against OpenAI in April 2025, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.

OpenAI developing AI agent smartphone with Qualcomm and MediaTek, targeting 300-400M annual shipments by 2028

OpenAI is developing a smartphone built around AI agents rather than apps, with Qualcomm and MediaTek jointly designing the custom processor and Luxshare Precision Industry co-designing and exclusively manufacturing the device, according to Ming-Chi Kuo, the TF International Securities analyst whose Apple supply-chain intelligence has made him the most closely followed hardware analyst in the industry. Kuo projects 300 to 400 million annual shipments if the device succeeds, a figure that would exceed Apple's iPhone volumes and place the phone in direct competition with the two companies that control roughly 40% of the global smartphone market. Specifications and the supplier list are expected to be finalised by late 2026 or the first quarter of 2027, with mass production targeted for 2028. Qualcomm's shares surged as much as 13% in premarket trading on the report. None of the three companies, Qualcomm, OpenAI, or MediaTek, confirmed the partnership. This is an analyst report, not an announcement, but the supply chain Kuo describes is not speculative. It is the supply chain that already builds the devices you own. The phone Kuo describes is not a smartphone with an AI assistant. It is a device where the AI agent is the interface and the app is obsolete. Instead of downloading applications and navigating screens, users would interact with agents that handle tasks directly: ordering transport, booking restaurants, managing email, conducting research, writing messages. The architecture would process lighter tasks on-device, including context awareness, memory management, and smaller AI models, while offloading complex inference to the cloud. The device would maintain what Kuo calls "full real-time state," continuously capturing a user's location, activity, communication, and environmental context to feed the agents. This is the vision Qualcomm CEO Cristiano Amon has been articulating throughout 2026: that AI agents will replace the mobile operating system and apps as the primary interaction layer, and that the hardware must be designed from scratch to support continuous, power-efficient AI inference rather than retrofitting existing chipsets with neural processing units bolted on. The concept is separate from OpenAI's other hardware project with Jony Ive, the former Apple design chief whose company io is developing a non-phone device, reportedly a smart speaker with a camera first, then glasses, a lamp, and earbuds, with the first product expected in early 2027. OpenAI is pursuing two parallel hardware strategies: a device that reimagines what a personal computer looks like without a screen, and a device that keeps the phone form factor but replaces everything that runs on it. Apple is testing AI smart glasses with a custom chip, cameras, and Siri powered by a Gemini model, targeting 2027. The question of whether AI lives in your phone, on your face, or in a speaker on your counter is being answered simultaneously by every major technology company, each with a different bet. OpenAI is betting on all of them at once. The credibility of the report rests on the supply chain, not the concept. Luxshare Precision Industry is a major Apple supplier that assembles AirPods, Apple Watch components, and an increasing share of iPhones. Qualcomm's Snapdragon 8 Elite Gen 5 powers 75% of Samsung's Galaxy S26 series and has, for the first time, overtaken Apple in raw multi-core and GPU performance. MediaTek's Dimensity 9500 matches Qualcomm and Apple in CPU performance at lower cost with better efficiency. These are not the suppliers of a concept phone. They are the suppliers of phones that ship in the hundreds of millions. Qualcomm's acquisition of Edge Impulse, an edge AI developer platform, in 2025 signalled the company's strategic commitment to on-device AI inference across device categories. The Snapdragon 8 Elite Gen 5's Hexagon NPU delivers 37% faster AI processing than its predecessor, supports agentic AI that learns from user behaviour, and includes a personal knowledge graph and continuous context awareness through an upgraded sensing hub. Qualcomm is also reportedly building custom 3D DRAM specifically optimised for AI workloads on mobile devices. The silicon for the phone Kuo describes does not need to be invented. The components exist. The question is whether the software paradigm works. The financial context matters. Qualcomm's stock was trading at $149.84 before the report, down from a 52-week high of $205.95, with earnings growth declining 46.9% and gross margins down to 55.1%. The company reports earnings on April 29, two days after the Kuo report. In February, Bloomberg reported that Qualcomm gave a "tepid forecast in sign of shaky phone market." An OpenAI partnership would represent a new revenue stream in a market where Qualcomm's traditional business, supplying modems and processors to phone manufacturers, is under pressure from Apple's efforts to develop its own modem chips and MediaTek's encroachment on the premium Android segment. Qualcomm would be helping build a device designed to challenge the iPhone while continuing to supply Apple with modem chips through at least 2027, a business relationship that embodies the contradictions of the semiconductor supply chain. The AI device category has produced more failures than products. The Humane AI Pin, a $699 wearable with a laser projector that beamed information onto the user's palm, was permanently bricked on February 28, 2025, when HP acquired Humane's remnants for $116 million and shut down the servers. The Rabbit R1, a $199 "large action model" device, attracted 100,000 pre-orders but retained only 5,000 active users after five months, a 95% abandonment rate. Its founder admitted the device launched too early. Both failed for the same reason: they created new form factors that solved no problem the smartphone did not already solve, at price points that demanded the user carry a second device. The OpenAI phone takes a fundamentally different approach. It is not an additional device. It is a replacement for the device 4.7 billion people already carry, in the same form factor, with the same basic capabilities, but with a radically different interaction model. Whether that is enough to avoid the graveyard depends on whether agents can do what apps do, better, faster, and without the friction of learning a new paradigm. AI is already reshaping the mobile app ecosystem, with "vibe-coded" applications flooding the App Store in such volume that Apple has had to crack down on submissions. The EU is preparing to force Google to open Android to rival AI assistants including ChatGPT and Claude under the Digital Markets Act, requiring equal system-level access for voice activation and deep integration. The smartphone's software layer is already in flux. Samsung's Galaxy S26 runs a triple AI engine with Gemini, Perplexity, and Bixby. Google's Pixel 10 hands off multi-step tasks to background AI agents. Apple Intelligence processes queries on-device with an emphasis on privacy. Every major phone manufacturer is moving toward AI-first experiences, but all of them are constrained by backward compatibility with billions of existing apps and the operating systems that run them. OpenAI's advantage, if the phone materialises, is that it has no legacy. It can design a clean-slate interaction model without worrying about whether Instagram's notification system works or whether the banking app renders correctly. The disadvantage is that users may not want a clean slate. They may want their apps and an AI assistant that works around them, which is what Samsung, Google, and Apple already offer. Kuo's projection of 300 to 400 million annual shipments would make the OpenAI phone one of the most successful consumer electronics products in history. For context, Apple ships roughly 230 million iPhones per year. Samsung ships approximately 220 million Galaxy phones. A new entrant reaching those volumes has no precedent in the smartphone era. The projection reflects the scale of OpenAI's ambition, not a reasonable base case for a first-generation device from a company that has never manufactured hardware, sold through carriers, managed warranty claims, or operated a supply chain at consumer scale. The Jony Ive device carries the same risk: a company whose expertise is in large language models attempting to become a consumer electronics manufacturer, a transition that requires competencies in industrial design, supply chain management, retail distribution, and after-sales service that OpenAI does not have and cannot acquire by hiring one designer, however talented. The 2028 timeline gives OpenAI two years to finalise specifications, secure component supply, build manufacturing capacity, develop the agent-first software platform, negotiate carrier partnerships, establish retail distribution, and convince hundreds of millions of consumers to abandon their iPhones and Galaxy phones for a device built by a company that has never shipped hardware. The Humane AI Pin took longer than that and shipped a device that lasted nine months before being permanently disabled. The ambition is extraordinary. The supply chain is credible. The concept addresses a genuine architectural limitation of current smartphones, which were designed around apps in 2007 and have not fundamentally changed since. But the distance between a credible supply chain report and a shipping product that displaces the iPhone is the distance between a thesis and a business, and every company in the AI device graveyard had a thesis too.

OpenAI's Revolutionary AI Gadget Is... a Phone? A Stinkin' Phone?

If you've been sitting at the edge of your seat waiting for OpenAI's world-changing AI device(s), you may want to scooch back on your chair. According to TF Securities International analyst Ming-Chi Kuo, the company behind ChatGPT is developing a smartphone. Yes, a smartphone. But it reportedly won't be just any old glass slabâ€"it'll be an "AI agent phone." An AI AGENT PHONE. What the hell is an AI agent phone? Allow me to explain: it's a phone that uses an AI "agent" to perform tasks on your behalf. Instead of a grid of apps on your home screen that you tap to open, and then tap and swipe and tap some more, you'd simply tell an AI agent to do something, and then it'd do it for you. "Users are not trying to use a pile of apps," Kuo posted on X. "They are trying to get tasks done and fulfill needs through the phone. This fundamentally changes how people think about smartphones." Kuo, known for his sources buried deep within the manufacturing supply chain, claims OpenAI is working with Qualcomm and MediaTek to create processors for the phone. His report is newsworthy because of his track record in accurately sharing information on product roadmaps long before they're officially announced. While OpenAI is actively developing a family of AI gadgetsâ€"which could include a pin or a pen or a pair of wireless earbudsâ€"this is the first time that we're hearing about a phone. The news isn't surprising at all. "Only by fully controlling both the operating system and hardware can OpenAI deliver a comprehensive AI agent service," writes Kuo. Ask any analyst or AI expert and they'll tell you the same: an AI device is only as intelligent as the information that it knows about you. Without deep, system-level permissions, an AI's usefulness will always be at the mercy of the operator, which is the device maker. It's this same reason why Humane's failed Ai Pin could not just be an accessory to existing phones or just an app. Humane knew what everyone is now realizing: you need to control everything from the hardware to the software if you want to put an AI in the driver's seat. This is also why, despite fumbling its more intelligent Siri for two years, Apple could come out of the whole disaster ahead of the pack. With over 1.5 billion active iPhones in use, it would take only a single update to push out "agentic" AI features to a large number of devices. With one software update, hundreds of millions of iPhones would suddenly become "AI agent phones." That's assuming Apple sorts out all of the issues and the new Siri actually works the way it was advertised nearly two WWDCs ago. "The smartphone is just the perfect product," Creative Strategies analyst Max Weinbach tells Gizmodo. "You need all of your data in one place that’s easy to access for any AI. You don’t want to connect all of your apps and services to a cloud host, so you need default apps (Apple mail has all of your emails, after all)... a display to show content, cameras to take in visualsâ€| smartphones are perfect." Every phone maker is remaking their phones into "AI agent phones." Google's Pixel 10 series started the slow transformation with features like "Magic Cue" that help anticipate tasks by showing pertinent information between certain Google apps. Samsung's Galaxy S26 phones have an "Automated app action" feature that lets you hail an Uber with a voice command; the phone uses onboard AI to open the app and then tap through the various screens until it reaches the payment confirmation. In China, the Duobao Phone has already delivered on this dream thanks to the country's more open (and less private, by design) apps. Some companies like Meta are betting that smart glasses with displays will replace phones. The more likely reality is that phones will never be replaced, the same way laptops and desktops still exist, despite the "post-PC" era of tablets endangering them over 15 years ago. "Everything else is just an accessory that augments how you use that experience through different modalities with AI, but using the phone as a hub is basically a must," Weinbach added. As to whether or not iPhone designer Jony Ive, who Sam Altman is new besties with and has tapped to help design OpenAI's AI devices, is in hell working on a device that might run on Android? "I would say the chances are pretty high," says Weinbach. "Qualcomm and MediaTek both provide open platforms so OpenAI could build anything from a Linux foundation, but it’s more likely they use Android. Android already provides you the telephony stack, networking, and low-level drivers for cameras and audio. It would be needless over-engineering to use an alternative." I guess we'll find out when OpenAI's phone goes into mass production... in 2028.

OpenAI may be planning a 2028 smartphone push with custom chips

I imagine that any future custom processor for OpenAI phones would prioritize AI silicon over other hardware bits. This would be broadly in line with Google Pixel phones, which emphasize AI capabilities over raw horsepower. However, some machine learning models fall back to the GPU or CPU if they aren't optimized for dedicated AI silicon. This might not be an issue if the OpenAI phone only runs in-house models, though. But the new processors can't make huge compromises to the CPU or GPU if there's a chance the phone needs to run alternative AI models.

OpenAI is building a smartphone, and it hopes to kill app stores

OpenAI is reportedly building its first smartphone, and it could prove disruptive by ending the historic dominance of app portals like Apple's App Store and Google Play. Well-known analyst Ming-Chi Kuo claims OpenAI is partnering with chip giants MediaTek and Qualcomm on phone processors, while China's Luxshare is said to be co-designing and manufacturing the hardware. Specs and the supply chain should be firmed up by late 2026 or early 2026, according to Kuo, but production isn't slated to start until 2028. We've asked OpenAI for comment and will update if we receive a response. OpenAI has already signaled its intent to build hardware, having struck a deal with former Apple design lead Jony Ive's LoveFrom to create its first products. The company has supposedly focused on a smart speaker, however, and wasn't expected to make a smartphone. Handsets are still poised to dominate "for the foreseeable future," Kuo says, so OpenAI might not have much choice. Does OpenAI want to kill app stores? Why use apps when agents can do it all? Kuo doesn't have any inside knowledge of how the OpenAI smartphone would work. However, he believes OpenAI will likely focus on AI agents, or systems that perform even complicated tasks through prompts and commands. Instead of using map, travel, and ridesharing apps to arrange a trip, for instance, an agent would plan and execute everything on your behalf. The analyst contends that an OpenAI phone would likely need "tightly integrated" AI both on-device and in the cloud to understand context (such as where you are or what you're trying to do) and to offload compute-heavy tasks to OpenAI's servers. There are strong incentives for the company to move the industry away from app stores, Kuo argues. A phone would not only help OpenAI foster an AI agent developer community, but let it bundle subscription plans for demanding users. OpenAI doesn't expect to become profitable until 2030, according to an internal analysis reportedly leaked to The Wall Street Journal. A phone-related surge in subscriptions could help the company achieve that goal. Can OpenAI compete against Apple and Samsung? An AI-focused smartphone still faces immense challenges From the outset, Kuo notes that incumbent smartphone brands already have an advantage. Luxshare just doesn't have as strong a supply chain as Foxconn (aka Hon Hai), Apple's main manufacturing partner. There are no guarantees OpenAI can match Apple, Samsung, Xiaomi, and other heavyweights in terms of sheer scale. Service-centric companies have a poor track record in the smartphone space. Amazon's Fire Phone struggled in part due to software that prioritized selling Amazon services over helping users. Facebook (now Meta), meanwhile, had major flops with HTC-made phones that revolved around its social network. Buyers won't necessarily want phones devoted to ChatGPT, particularly when AI chatbots are already easy to access through apps and built-in assistants. Related 10 Times Software Companies Tried to Make Hardware and Failed (and Vice Versa) It turns out that hardware and software don't always mix Posts By Demilade Adejola There's also the risk of a backlash against AI as a whole. Windows 11 users have objected to Microsoft's AI initiatives strongly enough that the company is scaling back Copilot, for instance, while AI-specific devices like the Humane AI Pin and Rabbit R1 never took off. An OpenAI smartphone could fare poorly if would-be customers are unimpressed by (or even hostile to) its agentic AI. Subscribe to the newsletter for expert AI-phone analysis Gain full industry perspective -- subscribe to the newsletter for in-depth analysis of what an OpenAI smartphone could mean for app stores, developers, subscription economics, and the future role of AI agents on devices. Get Updates By subscribing, you agree to receive newsletter and marketing emails, and accept our Terms of Use and Privacy Policy. You can unsubscribe anytime. OpenAI won't necessarily eliminate apps outright, and factors like design and pricing could influence its success. However, it's safe to say that app stores aren't immediately doomed. OpenAI needs to not only deliver quality hardware, but make AI agents capable enough that people are willing to drop a smartphone interface concept that has lasted for roughly two decades.

OpenAI may design its own chip for an AI-first smartphone

I've been writing about Android since 2011, with a focus on device reviews, Samsung and Google Pixel hardware, and the latest happenings in the ecosystem. In my entire writing career, I've reviewed more than 75 Android phones. Carrying both a Samsung or Pixel flagship and an iPhone as a daily driver provides me with deep insight into how Android works and how it compares to iOS. I have been writing for Android Police since 2021, covering news, how-tos, and features. You can find my previous work on Neowin, AndroidBeat, Times of India, iPhoneHacks, MySmartPrice, and MakeUseOf. When not working, I tend to mindlessly scroll through X, play with new AI models, or go on long road trips. You can reach out to me on X or drop a mail at [email protected]. OpenAI may be gearing up to take on Apple and Google in an unexpected way. It is reportedly working on a custom chip for its AI-first smartphone. In a post on X, TF International Securities analyst Ming-Chi Kuo said that OpenAI is working with Qualcomm and MediaTek to develop smartphone SoCs. It will supposedly only enter mass production in 2028, with Luxshare being the exclusive manufacturing partner. The company will seemingly finalize the specs and suppliers by late 2026 or early Q1 2027. Instead of raw power, OpenAI's smartphone SoC will likely focus on faster AI performance, something which Google already does with its Tensor chips. This also explains why it's collaborating with Qualcomm and MediaTek, as it saves OpenAI from developing its own CPUs and GPUs from scratch -- a time-consuming and expensive process. OpenAI is already working with Broadcom on its own AI chips for data centers. Such custom chips should help speed up AI workloads and reduce costs. Google, Amazon, and Meta are also building their own AI chips for similar reasons. AI agents will change how you use smartphones Kuo predicts that AI agents will become a key feature in future smartphones. Instead of apps, users will rely on AI agents to get things done. This will require phones that feature on-device and cloud AI integration. For OpenAI to deliver such an experience, it will need full control over the hardware and software. The analyst also believes that OpenAI may bundle subscriptions with the phone and work with developers on building an AI agent ecosystem. Essentially, like Apple, OpenAI will want to use the hardware to lure more customers to subscribe to its services. OpenAI is not the only company working on such a future AI-first smartphone. Google, Apple, and other companies are also possibly working on such initiatives for their future devices. Despite help from Qualcomm and MediaTek, building a smartphone from scratch is far from easy. OpenAI will need to deliver more than just strong AI capabilities and solve the problems around hardware and AI integration, app support, and user adoption for its AI-first smartphone to actually make a difference.

The OpenAI smartphone will fail, but it'll be good for iPhone users - 9to5Mac

The past few days have seen conflicting views from AI companies about the future of smartphones. Perplexity thinks AI will only benefit iPhones, while OpenAI reportedly thinks its own smartphone can render them obsolete. I would bet very heavily that the OpenAI smartphone will either never materialize or will be a commercial failure, but I still think the attempt is good news for iPhone users ... Perplexity CEO Aravind Srinivas doesn't think AI presents a threat to iPhone; quite the reverse. Here's my opinion. I haven't said this before. The phone, the iPhone is actually not getting disrupted by AI at all. In fact, the more AI works better, the iPhone essentially becomes your digital passport. He says the iPhone is central to the ways in which we live our lives, and that isn't going to change. If a Ming-Ching Kuo report is accurate, OpenAI disagrees with this assertion. He suggests the company is working on its own smartphone. OpenAI is working with MediaTek and Qualcomm to develop smartphone processors, with Luxshare as the exclusive system co-design and manufacturing partner. Mass production is expected in 2028. The company's concept is that the operating system will be based on AI agents instead of apps. In other words, you won't open a specific app to achieve a task - instead, you will delegate the task to an AI agent. In principle, I think OpenAI is correct in its belief that human beings have tasks they want to achieve, and that apps are simply one possible tool we can use. I'd love to be able to simply pick up my iPhone, tell Siri what it is I actually want to achieve and then receive confirmation a few seconds or minutes later that the task has been done. For example, tell Siri to book a trip, knowing that it has all my preferences for airlines, plane seats, hotels, etc; that it is able to apply my frequent flyer miles to the trip; that it has access to my diary to ensure the timings work; and so on. I do think we will get there eventually, and once we do then the concept of human-accessed apps will be at least partly redundant. However, this certainly isn't going to be by 2028! Given the schoolboy errors made by AI systems at present, it will be a very long time indeed before I will trust an agent to do anything important for me, let alone anything as ambitious as taking care of travel plans. Even when it does eventually happen, this doesn't mean that we're going to abandon our iPhones. The Apple ecosystem will become even more important in this kind of interconnected world, and the appeal of the iPhone maker's approach to privacy will only increase. However, although I think an OpenAI smartphone would flop, I would be very happy indeed to see the company make the attempt. It'll accelerate the process of moving beyond apps and into Agentic AI delegated tasks, and it'll push Apple to go further and faster in this direction. We won't be giving up our iPhones, but they will get smarter, faster with this kind of competitive pressure.

OpenAI reportedly working on its own smartphone based around AI agents

Many have thrown around the idea that AI will replace the smartphone, but it seems even OpenAI disagrees as the company is working on its own smartphone that focuses on the use of AI agents. Analyst Ming-Chi Kuo reports that OpenAI is developing its own smartphone. The new device would be powered by custom hardware from either MediaTek or Qualcomm, with production through Luxshare, a company which also assembles iPhones. The new device, Kuo says, would "deliver a comprehensive AI agent service." A concept shared by Kuo shows a device that replaces its homescreen with a panel of information and ongoing agentic AI tasks, such as booking flights, compiling market data, and more. OpenAI's device likely won't look exactly like this, but Kuo believes this is how AI agents will "redefine" the smartphone. The actual device apparently won't be finalized until late this year or even early 2027, with mass production not happening until 2028. It's hard to imagine this device is based on anything other than Android for the underlying architecture, but there's no mention of that in the report.

9 reasons why the ChatGPTphone isn't an iPhone threat

As if the smartphone market wasn't already stuffed with enough rivals to the iPhone, it's emerged this week that AI giant OpenAI is getting ready to throw its hat in the ring. In a short article posted to Twitter/X, the highly respected analyst Ming-Chi Kuo claimed the ChatGPT maker is "set to redefine smartphones" with a new handset created in partnership with Qualcomm, MediaTek, and Luxshare. Apple has so far struggled to bring the iPhone up to speed with the pace of AI development, and on first impressions, this might sound like a formidable challenge for John Ternus to deal with as he settles in as CEO. But I don't think he'll be worried about the threat of the "ChatGPTphone." Here's why. In the article, Kuo talks about the evolution from app to agent. "Users are not trying to use a pile of apps," he says. "They are trying to get tasks done and fulfil needs through the phone." That sounds good if the apps you're replacing are Calendar, Clock, Weather, and a bunch of airline, rail, and cab apps. But people will still want to watch and listen to streaming services, browse social media, play games, track sports, and do dozens of other things on their phones. You can't replace apps with an AI agent unless it's just a glorified app launcher. Apple has been doing this for nearly 20 years, and has built up a loyal fan base of users who would never consider anything other than an iPhone. Google and Samsung, too, have multi-generation fans, as do the other manufacturers of Android phones. Even if OpenAI's phone came out in 2026, that would already be extraordinarily late to be trying to break into the smartphone market, but Kuo says mass production won't start until 2028... by which point, as a commenter points out, OpenAI may not even exist. It's a mark of OpenAI's lateness that by this point, most other companies are trying to plan for what comes after the smartphone. OpenAI will be going from a standing start in a mature market stuffed with contenders that have, as mentioned above, been doing this for almost two decades. Even with design guru Jony Ive on the team, it takes multiple generations to get this sort of thing right, and that's time OpenAI hasn't got. "OpenAI's advantages lie in its consumer brand, years of accumulated user data, and leading AI models," Kuo writes. We'll come to the second and third factors in due course, but even the brand awareness is debatable. OpenAI certainly has a lot of brand value in ChatGPT, but far less as a company. And just because people know or even like a piece of software, it doesn't mean they're prepared to pay hundreds of dollars for hardware by the same company. With its iterative updates and generally conservative designs, Apple makes the smartphone market look easy. But it's not just about the phone, and OpenAI hasn't got anything like the same surrounding ecosystem to push people towards its smartphone and then lock them in. The iPhone benefits from seamless compatibility with the AirPods, Apple Watch, Mac, and Vision Pro, and also benefits from the appeal of Apple Music, iMessage, Apple Pay, the App Store, and so much more. The only halo product OpenAI can build a phone around is ChatGPT, and the problem with that... ...is that ChatGPT is already on the iPhone, both as an app and integrated with Siri and Apple Intelligence. OpenAI could cut those off (along with the Android app) to give itself a USP, but that would likely hurt OpenAI more than its smartphone competitors. Yes, ChatGPT was the catalyst for the AI explosion over the past few years, and it's a market-leading model. But rivals have proliferated, and most are backed by larger companies with a greater capacity to endure the inevitable market dips. AI is only likely to become more commoditised. Why buy a phone built entirely around ChatGPT when you can get a phone that can run ChatGPT as well as Gemini, Claude, or whichever model you may happen to prefer? I'm the last person to praise Siri or Apple Intelligence, but Apple has made AI a top priority, and it has the resources to reach a solution eventually (or just buy a company that has a worthwhile model already). It's really just a matter of time before Apple Intelligence works well, and that'll happen before the OpenAI phone arrives. At which point, the one thing OpenAI does better than Apple won't be an issue any more, while Apple will still have all its other advantages as a maker of phones and phone software. If you examine OpenAI's hardware development history, it becomes clear that this entire project isn't its first choice. The company originally wanted to make an AI pin, which it worked on with former Apple design guru Jony Ive (who is now more closely associated with OpenAI following a merger with Ive's LoveFrom studio in 2025). Why suddenly shift from a pin to a phone? All the reasons above, presumably. But rival AI pins such as Humane were savaged by reviewers, and OpenAI is now fleeing to the more consumer-friendly world of phones as a half-hearted compromise. Good luck with that.

OpenAI is reportedly making its own phone -- here's how it could be different from the iPhone

A smartphone with easier access to ChatGPT might be in the works With OpenAI's partnership with former Apple design chief Jony Ive, the designer/creative firm LoveFrom and the AI hardware startup io Products, Inc., everyone has kept their eyes peeled for the first physical product to come from Sam Altman's company. Rumors have pointed to OpenAI's consumer hardware launching as a screenless, voice-powered, pocket-sized AI companion sometime in 2027. AI-powered smart glasses and earbuds may also be on the docket for OpenAI's first line of physical products. A new report has surfaced regarding OpenAI's foray into the smartphone market and how it could differentiate itself from its competitors, which are primarily Apple's iPhones and Samsung's Galaxy models. An OpenAI smartphone that could land in your hands in 2028 Analyst Ming-Chi Kuo of TF International Securities posted on X that OpenAI is reportedly working with MediaTek and Qualcomm on smartphone processors. He also claimed OpenAI is partnering with Luxshare as both the manufacturing partner and exclusive co-designer of the device's system, with mass production potentially starting in 2028. Kuo suggested an OpenAI smartphone could differentiate itself from current leaders by focusing less on traditional app marketplaces dominated by Apple and Google, and more on AI agents that handle a wide range of tasks. He added that building its own hardware stack could allow ChatGPT to operate with fewer restrictions than those typically imposed by mobile operating systems. Kuo argued OpenAI's strengths include its consumer brand, years of user data and leading AI models. He also suggested the company could bundle subscriptions with hardware and create a new AI agent ecosystem for developers. The takeaway Altman has high expectations for OpenAI's foray into physical products, as evidenced by the open letter he and Jony Ive penned to commemorate his company's partnership with the former Apple design chief. "What it means to use technology can change in a profound way," he said. "I hope we can bring some of the delight, wonder and creative spirit that I first felt using an Apple Computer 30 years ago. In a world where iPhones and Samsung Galaxy smartphones can be seen anywhere and everywhere, it'll be hard for OpenAI's rumored smartphone to make any major headway in the smartphone industry. But if they find a way to inject ChatGPT into its device and produce comparable AI agents that mimic the reliable performance of its smartphone competitors' most used apps, OpenAI may find a way to make a slight dent in the market with its signature device. 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 Reportedly Working on an AI Smartphone to Rival iPhone

OpenAI is working on a smartphone in what appears to be a significant reversal from previous reports that the company had no plans to enter the phone market, according to supply chain analyst Ming-Chi Kuo. Kuo shared the findings from his latest supply chain checks in a post on X, saying MediaTek and Qualcomm are the chosen chip partners and Luxshare Precision Industry is the exclusive manufacturing partner, with mass production scheduled for 2028. Exact chip specifications and additional suppliers are expected to be finalized by late 2026 or the first quarter of 2027. Kuo argues that the smartphone remains uniquely positioned for AI agent use because it is the only device that captures a user's full real-time state, including location, activity, communication, and context, which he describes as the most important input for real-time AI agent inference. He claims that AI agents will fundamentally change how people interact with a phone, shifting the focus from launching individual apps to completing tasks through a more continuous, context-aware interface. He 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, and that a subscription-bundled business model could enable OpenAI to build a developer ecosystem around those agents. Kuo suggests that Luxshare, which has long sought to reduce its dependence on Apple supply chain work, could benefit substantially from an early position in what he frames as the next generation of smartphone hardware. The development represents a notable reversal in OpenAI's publicly stated hardware strategy. Previous reports have consistently described the company's hardware ambitions as centered on non-phone form factors developed in collaboration with Jony Ive, the former Apple design chief whose startup io Products was acquired by OpenAI for $6.5 billion. Those plans include a smart speaker, which is likely the first product to launch, along with smart glasses, a smart lamp, and potentially earbuds. OpenAI Chief Global Affairs Officer Chris Lehane has said the first hardware announcement is expected in the second half of 2026, with launch around early 2027. OpenAI CEO Sam Altman posted on X the same day Kuo published his analysis, writing that it "feels like a good time to seriously rethink how operating systems and user interfaces are designed." Such a device would obviously put OpenAI in direct competition with Apple's iPhone.

Open AI May Be Making a Phone That Moves Away From Apps

OpenAI may be making a ChatGPT phone with AI agents replacing apps to complete different tasks, according to a new report. A new note on X from industry analyst Ming-Chi Kuo claims that the AI company might be working on a phone in collaboration with MediaTek, Qualcomm, and Luxshare. Analyst Ming-Chi Kuo, who has reported on several Apple hardware plans in the past, says that OpenAI would develop a smartphone chip with MediaTek and Qualcomm, with Luxshare acting as a co-design and manufacturing partner. The report comes after the brand confirmed a deal with Broadcom last year to develop custom AI-accelerator technology. The analyst's post on X indicates that the device may move away from traditional apps altogether, with AI agents handling tasks directly for the user. At present, platforms run by Apple and Google largely determine which apps are available and what level of system access they are allowed, which can limit functionality. Kuo argues that if OpenAI builds its own smartphone and controls the full hardware and software setup, it could integrate AI more deeply across features without those constraints. He also notes that with ChatGPT approaching one billion weekly users, a widely used consumer device could strengthen OpenAI's efforts to expand its reach further. Kuo's report suggests that smartphone design is where OpenAI believes it could revolutionize how users interact with portable devices. For example, Kuo explains that integrating an AI assistant with a chip from the same company may allow it to redesign software as a stream of behavior, and break away from using individual apps with all functionality handled by a single chatbot. Kuo says OpenAI's phone would be built to constantly interpret what a user is doing and adjust in real time. He adds that, by controlling the device itself rather than just providing an app, the company could potentially see more detailed information about user behavior than it would through software alone. The analyst's report also notes that OpenAI is expected to work on a mixture of small on-device models and cloud models to handle different types of requests and tasks. Kuo, who works at TF International Securities, says, "The phone needs to continuously understand the user's context. Power consumption, memory hierarchy management, and basic small-model execution will be key processor design considerations." Analyst Ming-Chi Kuo says OpenAI aims to enter mass production in 2028. The analyst says the smartphone's specifications and its component suppliers are expected to be finalized by the year-end or by the first quarter of 2027. The report comes after OpenAI Chief Global Affairs Officer Chris Lehane says that the company is on track to announce its first hardware product in the second half of 2026. While the company is not spilling any details, recent reports have suggested that OpenAI's first device could be a pair of earbuds. According to reports, this device is codenamed "Sweet Pea" and will have a unique design as compared to existing earbuds.

Rumor has it OpenAI is building an agentic AI smartphone

OpenAI is apparently not content with just running the most talked-about AI chatbot on the planet. The company now wants to be in your pocket, too. Prominent Apple analyst Ming-Chi Kuo published findings this weekend revealing that OpenAI is developing a smartphone built around AI agents rather than traditional apps. According to Kuo, the device is being built in partnership with MediaTek and Qualcomm on the processor side, with Luxshare serving as the exclusive manufacturing partner. Mass production isn't expected until 2028, with specs and suppliers likely locked in by late 2026 or early 2027. The core pitch, per Kuo, is a fundamental rethinking of the way our phones work. Instead of juggling a pile of apps, users would simply tell their phone what they want to do, and the AI agent would accomplish that task. OpenAI is reportedly building an agentic AI operating system from the ground up around that premise. Kuo notes that OpenAI has several advantages in this space, including an established consumer brand, years of accumulated user data, and frontier AI models. The phone would reportedly combine on-device AI for continuous context awareness with cloud AI handling heavier computational tasks. This is a separate venture from OpenAI's previously announced hardware ambitions. The company has been working alongside former Apple Chief Design Officer Jony Ive on a small, screenless AI companion device. As Mashable reported last October, that project has hit significant development headwinds, including software architecture challenges, infrastructure hurdles, and the thorny question of how to build an "always-on" AI personality that feels helpful rather than creepy. One source close to the project told the Financial Times that OpenAI is already stretched thin just keeping ChatGPT running, which reportedly costs between $3 and $4 billion annually. A release that was once eyed for 2026 could slip to 2027. Whether OpenAI can actually deliver on any of its hardware ambitions is the real question. Several "revolutionary" AI devices have already gone to the tech graveyard. The Rabbit R1 promised similar things. So did the Humane Pin, which was discontinued less than a year after launch. OpenAI is betting that it's not like the others. Want to learn more about getting the best out of your tech? Sign up for Mashable's Top Stories and Deals newsletters today.

AppleInsider.com

OpenAI is absolutely hemorrhaging cash. Despite that, the ChatGPT owner is talking to chipmakers to make an iPhone competitor, with AI centric to the design. OpenAI is already in the process of working with former Apple design chief Jony Ive on an AI hardware project. However, OpenAI has the potential to take on the smartphone market and try to rival Apple with an AI-centric version. In an X post on Monday, TF Securities analyst Ming-Chi Kuo wrote that OpenAI is working with MediaTek and Qualcomm on a new generation of smartphone processors. The report frames this as OpenAI moving into the smartphone space. OpenAI is also working with Luxshare, who is identified by Kuo as the exclusive system co-design and manufacturing partner. As for when the device will arrive, Kuo says it should appear in 2028. According to Kuo, and obviously, the intention is to come up with an AI agent-based smartphone. Since users apparently don't want a pile of apps and want to get tasks done, this opens an opportunity for OpenAI to change how people think about using smartphones. Kuo has a very good record when it comes to Apple, thanks to years of quite reliable supply chain checks. He's also reasonably good at forecasting Apple's future product moves, though he does have the occasional misstep, just like anyone else trying to predict things years in advance. An integration play While OpenAI already has apps on smartphones, including the iPhone and some integration with iOS, the move to make its own is all about integration and control. By fully controlling the operating system and the hardware, Kuo muses, OpenAI can provide a "comprehensive AI agent service." The smartphone is also the only real way forward, he continues, since it is the only device that captures the user's "full real-time state." This is a necessity for real-time AI agent inference. The device must continually understand the user's context, with on-device processing being a big feature. However, complex and compute-intensive tasks will still be handed off to cloud AI. Kuo points out that the smartphone hardware market is already very mature, making OpenAI's entry into it reasonably stress-free. While OpenAI has the advantage in AI models, accumulated user data, and in branding, it can parlay it all into the proposed smartphone. The ecosystem control will also open up opportunities for OpenAI to earn revenue, such as bundling hardware and software subscriptions. An AI agent ecosystem is also a possibility. OpenAI is bleeding cash as it swells in size with no road to profitability in sight. Making its own smartphone doesn't seem out of the ordinary, given the circumstances. Apple similarities This sounds a lot like its taking pages from the Apple playbook, in making a device with a self-contained ecosystem that it can have a lot of control over. Even more so, a device that it has control over with little in the way of limitations imposed by suppliers. There's also the mindshare at OpenAI that has experience working with Apple. Engineers have, over the years, left Apple to work at OpenAI and other companies in the AI space, taking their knowledge with them. There's also the acquisition of IO Products, and therefore the hardware expertise of Jony Ive and the ex-Apple staff he has also hired. Ive and OpenAI CEO Sam Altman have already admitted that there is a prototype for the first OpenAI device, which may be an AI pin. However, it's not hard to imagine Ive being roped into designing an OpenAI smartphone, especially if it can pull consumers away from Apple. There is also the small possibility that the Qualcomm-MediaTek chip plan is for this mysterious prototype, not for a smartphone. Smartphone chips can be used in many different types of hardware, so there's every chance the chips end up in something that isn't specifically a smartphone.

The next iPhone moment might come from an AI company, not Samsung or Apple

Your smartphone has a pile of apps. OpenAI wants to replace all of them with one AI agent that just gets things done. That's the vision behind the company's plans to build its own smartphone, complete with a custom processor co-developed with MediaTek and Qualcomm, as first reported by analyst Ming-Chi Kuo on X. And Sam Altman seems to agree. In a post on X, the OpenAI CEO wrote, "feels like a good time to seriously rethink how operating systems and user interfaces are designed." That is not a subtle hint. Why would OpenAI want to make a phone? We have seen earlier attempts at developing truly agentic AI in the form of Rabbit, Humane AI Pin, and other AI devices. However, those devices lacked the tight integration with our phones, apps, and services, resulting in failure. It seems that OpenAI wants to sidestep the limitation by creating its own phone to provide users with a true AI assistant. Recommended Videos There are three solid reasons. First, to deliver a truly comprehensive AI agent experience, OpenAI needs full control over both the software and the hardware. Relying on Android or iOS means playing by someone else's rules. Second, your smartphone knows more about you than any other device. It tracks your location, your habits, and your daily context in real time. That kind of data is gold for an AI agent trying to anticipate your needs before you even ask. Third, smartphones are and will remain the biggest device category on the planet. If OpenAI wants to scale, this is where it needs to be. How will the AI actually work on this phone? According to Ming-Chi Kuo, the new OpenAI smartphone will work on a two-layer system. The phone will handle lighter tasks on-device, like understanding your context, managing memory, and running smaller AI models. Heavier tasks get offloaded to the cloud. It's similar to what Apple does with its iPhone and Private Cloud Compute, but OpenAI has the benefit of an actually working artificial intelligence model and not the disaster Apple calls Apple Intelligence. On the business side, OpenAI is likely looking at bundling hardware with subscriptions, similar to how Apple bundles services, while also building a developer ecosystem around its AI agents. Who is helping OpenAI build this thing? Mr. Kuo reports that MediaTek and Qualcomm are the processor co-development partners, while Luxshare is the exclusive system co-design and manufacturing partner. Luxshare is particularly interesting here. According to Kuo, the company has long tried to challenge Hon Hai's (read Foxconn) dominant position in Apple's supply chain without much success. This project gives Luxshare an early foothold in what could be the next major smartphone generation, and that is a big deal for the company. 2028 feels far away, but if OpenAI pulls this off, the smartphone you are using today might look very different in the near future.

OpenAI is making its own phone to compete with the iPhone: report - 9to5Mac

OpenAI's hardware ambitions have been no secret, but the company has long indicated it's not making a phone. But a new report says that's no longer the case, and an iPhone competitor from OpenAI is now in the works. If you've followed OpenAI hardware rumors, you'll know that the company is working with former Apple design chief Jony Ive on a suite of AI-infused hardware devices. The first product expected to launch is a new HomePod-type smart speaker infused with ChatGPT and built-in camera. Smart glasses and a smart lamp are also reportedly in development. While previous reporting has consistently said that OpenAI is not working on a phone, it seems that's no longer the case. Here's analyst Ming-Chi Kuo, in a post on X: OpenAI is working with MediaTek and Qualcomm to develop smartphone processors, with Luxshare as the exclusive system co-design and manufacturing partner. Mass production is expected in 2028...Specifications and suppliers are expected to be finalized by late 2026 or 1Q27. Kuo also explains his belief that AI agents will shape the OpenAI smartphone, making it work and feel very different from an iPhone. In what's probably no coincidence, OpenAI CEO Sam Altman posted the following on X yesterday: While OpenAI clearly believed at one point that it could disrupt the iPhone with its first AI devices, perhaps it now sees the smartphone as central to AI uses for many years to come. That sounds a lot like the belief of Perplexity CEO Aravind Srinivas, who said last week that "the iPhone is actually not getting disrupted by AI at all." He instead argued that as AI improves, the iPhone becomes even more valuable to users. What do you think of OpenAI creating its own phone? Let us know in the comments.

OpenAI Is Building Its Own Smartphone Chip With Qualcomm and MediaTek: Report - Decrypt

Qualcomm surged as much as 12% intraday on the unconfirmed analyst report, partially recovering from its 13% year-to-date decline. OpenAI is co-developing a smartphone chip with Qualcomm and MediaTek, with Luxshare handling system co-design and manufacturing, according to Ming-Chi Kuo, a reputable leaker and analyst at TF International Securities. He posted the details on X on Monday. Mass production is expected in 2028, with specs and suppliers to be finalized by late 2026 or early 2027. None of the named companies have confirmed anything as of yet, and OpenAI didn't respond to Decrypt's request for comments. The market didn't wait. Qualcomm surged as much as 12% intraday on Kuo's note alone, almost erasing all the 2026 losses at its peak, even though the surge cooled a bit in the following hours. The device Kuo describes isn't a phone with a chatbot icon. The idea is to kill apps entirely and replace them with an AI agent that handles tasks directly. "Only by fully controlling both the operating system and hardware can OpenAI deliver a comprehensive AI agent service," Kuo wrote. The chip would run a mix of on-device and cloud inference, with the phone tracking user context in real time. Standalone AI hardware hasn't been kind to anyone who's tried building an AI-centric device. The Humane AI Pin was discontinued. The Rabbit R1 got torched in reviews. The premise that users will swap their existing phone for a purpose-built AI gadget has not been validated at any meaningful scale. The timing is also jarring. Back in March, a Wall Street Journal report revealed that OpenAI's then-chief of applications Fidji Simo had told employees in an all-hands meeting that the company needed to stop being distracted. "We realized we were spreading our efforts across too many apps and stacks, and that we need to simplify our efforts," she said, adding that until then, the team was heavily distracted by "side quests." The focus now, she said, should be coding and enterprise users. Then OpenAI put that into practice. The Sora video generation consumer app was shut down shortly after. Then, the company folded its OpenAI for Science division. Kevin Weil and Sora's Bill Peebles walked out on April 17. A multi-year, multi-billion-dollar smartphone program is the opposite of a focus reset. Besides this phone, OpenAI has a separate hardware endeavor, which started after OpenAI bought Jonny Ive's hardware startup io for $6.4 billion in May 2025, with the first products due in the second half of 2026. That device was described internally as a non-phone form factor -- a wearable, essentially. That device has not been announced yet. The underlying logic isn't hard to follow. Apple's decision to design its own sillicon -- chips tuned specifically for its software -- gave it a performance edge no Android rival has matched. An OpenAI chip built around ChatGPT inference would cut out the compromises baked into a general-purpose Snapdragon, and remove Apple and Google from the equation when it comes to which AI features get system-level access. Qualcomm reports Q2 earnings on Wednesday, where analysts expect revenue of around $10.56 billion. This rumor of an OpenAI chip program may potentially impact its market price.

Here's What We Know About OpenAI's Rumored Smartphone

It's not clear whether a ChatGPT phone would actually be able to compete. There are many generative AI apps and services out there, but ask most people what "AI" means to them, and they'll likely say "ChatGPT." As of this article, the chatbot remains the most-downloaded free app on both the iOS App Store and the Google Play Store, beating out competitors like Claude, Gemini, and Meta AI. But it's one thing to download a free AI program; it's another entirely to buy a phone built around that AI. On Monday, analyst Ming-Chi Kuo made headlines by reporting that OpenAI might be working on its own smartphone. As part of this process, Kuo says OpenAI may be collaborating with MediaTek, Qualcomm, and Luxshare -- major players in different elements of smartphone manufacturing. MediaTek and Qualcomm would be responsible for manufacturing OpenAI's smartphone chip, while Luxshare may help design and develop the smartphone itself. The report suggests OpenAI may have a different take on the smartphone concept with this product. Unlike iPhones and Androids, which largely run on individual apps, OpenAI's phone may rely on AI to accomplish similar tasks. Agentic AI is currently all the rage, so it would make sense for OpenAI's goal to be for its AI to perform tasks and functions on behalf of the user. Instead of a notation app, maybe you'd ask the AI to dictate and store your thoughts away until you need them again; perhaps the "Phone" app would be replaced by an AI that could connect you to whomever you'd like to speak to; even a traditional web browser could look like ChatGPT retrieving the sites and information you're interested in. Replacing apps with agentic AI would require an enormous amount of processing. Kuo thinks that OpenAI's plan is to develop two different types of models: one that runs on-device, perhaps to handle simpler requests, and one that runs in the cloud, maybe to handle more demanding tasks and functions. These models could work together to monitor the user at all times, and understand the user's context when they issue new requests. This is still an early discussion, according to Kuo. OpenAI may not finalize plans with these companies until the end of this year, or by Q1 of 2027. As such, ChatGPT phones may not start mass production until 2028. That's not to say that OpenAI will wait two years to unveil any products at all. The company has previously stated that it will announce a device in the latter half of this year, perhaps the product ex-Apple designer Jony Ive is developing for OpenAI. Rumors suggest this device could be earbuds that would, of course, work with ChatGPT. While OpenAI has been open about its plans to develop actual devices in concert with its AI services, this report from Kuo is the first real indication yet that the company is working on an iPhone and Android competitor. That might make sense from OpenAI's view: Right now, the vast majority of ChatGPT users are running these apps on their smartphones, so why not disrupt that market with a phone designed by ChatGPT's makers? It also seems like evidence that, despite the push for smart glasses and subtle wearables, OpenAI still considers the smartphone the definitive device for the foreseeable future. The issue as I see it, however, is that the smartphone is definitive because of its current systems and designs. People like their iPhones, and they like their Androids, not just because they can run ChatGPT, but because they can run all of their other daily apps as well. They're not buying a phone because of ChatGPT: they're installing ChatGPT on the device they already use. You're not going to convince someone who relies on iMessage, FaceTime, and Apple Maps to switch to a phone that revolves around ChatGPT, just as you won't budge a customer who uses Google Messages, Google Meet, or Google Maps -- not to mention all the other apps and games that they may use every day. I don't think we're going to be using iPhones and Androids until the end of time: Something is going to disrupt the status quo, and convince people to move on to the next big thing. I just seriously doubt that thing is going to be a "ChatGPT Phone."

OpenAI plans smartphone release with custom processors in 2028

OpenAI plans to launch a smartphone in 2028 powered by custom processors developed in collaboration with MediaTek and Qualcomm. The smartphone is rumored to focus on AI applications with chip specifications expected to be finalized by late 2026 or early 2027. Analyst Ming-Chi Kuo revealed on Twitter that mass production of the device is set to begin in 2028. OpenAI's recent partnership with Broadcom for custom AI chips targeted at next-generation computer clusters suggests a significant venture into the smartphone market. Kuo stated that critical design considerations for the processors will include power consumption, memory management, and the execution of small AI models. The company aims for its processors to handle complex tasks using cloud AI, similar to existing high-end Android devices. The finalized specifications and details regarding suppliers are anticipated by late 2026 or the first quarter of 2027. Future processors from OpenAI are expected to prioritize AI capabilities over traditional specifications, potentially featuring extensive always-on functionality to enhance user context understanding.

Move Over Apple -- OpenAI Is Reportedly Developing a Radical New Device With No Apps

A new smartphone could be heading to market through an unexpected partnership between OpenAI and Qualcomm. The partnership, which also reportedly includes Taiwanese MediaTek and Chinese Apple supplier Luxshare ICT, is intended to develop a mobile processor for a device that could redefine current expectations of what smartphones can do. TF International Securities analyst Ming-Chi Kuo first posted about the rumored partnership on social media platform X Sunday. The post, which originally appeared in Chinese, noted that Luxshare would be the exclusive co-design and manufacturing partner. The news follows OpenAI's $6.5 billion acquisition of famed Apple designer Jony Ive's startup IO in May 2025. The deal was announced with the intention to create a gadget purposefully designed for AI. At the time, Ive and OpenAI CEO Sam Altman were light on details about what the device could be, although they hinted that it wouldn't look like another smartphone. But perhaps this device won't either -- at least not in the way that consumers have come to think about phones. Kuo's post hints that the device would be fully controlled by an AI agent, requiring that the phone's processor prioritize power and manage memory in a unique way. Although the device could operate smaller AI models locally, more complicated demands could be outsourced to AI that is hosted in the cloud. The analyst also noted that the device would not contain a collection of apps, but rather that the device itself would execute tasks.

OpenAI wants to take on Apple and Samsung, but it's got a long road ahead

Summary OpenAI is partnering with MediaTek, Qualcomm, and Luxshare to build phone processors, according to analyst Ming-Chi Kuo Mass production is expected in 2028. A post by OpenAI CEO Sam Altman about rethinking how OS's are designed seems to lend some credence to the idea. It looks like OpenAI might be making a phone after all. To date, the company has seemed to indicate that it has no plans to enter the smartphone market, but a recent post on X from supply chain analyst Ming-Chi Kuo might turn that idea on its head. Related I had Claude, ChatGPT, and Gemini each build the same Chrome extension, and only one actually worked Three LLMs, one prompt, and a lot of disappointment. Posts 7 By Mahnoor Faisal OpenAI appears to be designing phone chips In his post, Kuo reports that "OpenAI is working with MediaTek and Qualcomm to develop smartphone processors" and that Luxshare will be the "exclusive system co-design and manufacturing partner." He goes on to say that mass production is expected in 2028. In the same post, Kuo goes on to detail why he thinks OpenAI might want to make a phone, and even shares a design for what that device's interface might look like. Essentially, he feels that "Only by fully controlling both the operating system and hardware can OpenAI deliver a comprehensive AI agent service." Phones also provide more real-time info for AI to work with, such as location data. This is interesting and begs the question of why OpenAI would be developing phone processors. The company has previously expressed interest in hardware, and is famously working on a design for a screenless device with former Apple designer Jony Ive. In fact, OpenAI even acquired Ive's company in support of this. However, that's a far cry from a smartphone, and Altman has generally dismissed that idea in the past. Corroboration from Altman? OpenAI CEO Sam Altman also posted on X -- on the same day as Kuo, no less -- saying that it "feels like a good time to seriously rethink how operating systems and user interfaces are designed." While that could be a coincidence, it would seem to lend some credence to the idea that the company might be looking to try to shake things up in the hardware and OS space. Can OpenAI break into the smartphone space? It's going to be tough to compete with Apple The smartphone market is very well-established, and trying to dethrone Apple or Samsung at this point seems like a bit of a fool's errand. I'm sure there are some die-hard ChatGPT fans or intrepid early adopters who would buy something like this, but few things get the average smartphone user riled up like a UI change. Redesigning the entire paradigm for how a phone functions seems like a bold (and risky) move -- never mind the obvious privacy concerns. Responses to Kuo's post seemed to reflect that: Sentiments on Reddit weren't much better: Then there's the question of whether OpenAI could even build the software to do this. ChatGPT isn't without issues -- sometimes, simple tools like Excel can outperform it. Phones are often the center of our digital lives, so there's a lot of responsibility involved in building an OS that will try to tell you what it thinks you need to know at any given moment (plus, we like Claude better). What do you think? Would you buy an OpenAI phone? And do you think the current smartphone interface needs to be shaken up? Drop us a comment and let us know!

OpenAI Reportedly Eyeing AI Smartphones With Custom Chips

Control over software and hardware is key to OpenAI's long-term strategy OpenAI is said to be moving towards building new custom processors for smartphones. According to an analyst, the San Francisco-based artificial intelligence (AI) company has partnered with MediaTek and Qualcomm, and both chipmakers are expected to benefit from long-term demand if smartphones with agentic AI capabilities gain traction. The project, however, is still believed to be in the infancy stage, with mass production currently targeted for 2028. The analyst said that the supply chain is expected to involve Luxshare as the exclusive system co-design and manufacturing partner. OpenAI's Phone May Prioritise Power Efficiency, Memory Management In an X post, TF Securities International analyst Ming-Chi Kuo writes that OpenAI's ambitions extend beyond building chips, with the company reportedly exploring a broader push into AI-centric smartphones. The analyst said that MediaTek and Qualcomm are expected to benefit from long-term demand if AI agent smartphones gain traction. According to claims, the processor design is expected to prioritise power efficiency, memory management, and on-device AI capabilities, while more complex tasks would be offloaded to cloud infrastructure. Specifications and supply chain partners of the said processor may be finalised by late 2026 or early 2027. A conceptual smartphone interface to illustrate the potential evolution of the AI-driven experience, with iPhone as a reference point Photo Credit: X/ Ming-Chi Kuo The concept of an AI agent is said to be a driving force behind OpenAI's latest initiative, which could potentially bring about a shift in how users interact with their devices. Instead of navigating multiple apps, they may rely on a unified system that directly completes tasks, as per the analyst. If this move comes to fruition, it would signal a departure from the traditional app-based ecosystems toward more context-aware computing. According to Kuo, OpenAI views the tighter integration of software, operating systems, and physical hardware as essential to its long-term strategy. To deliver a seamless AI agent experience, the company is said to be prioritising control over both hardware and software ecosystems. The analyst further noted that smartphones remain the most critical device category for capturing the real-time user data necessary for effective AI inference. The analyst further suggests that OpenAI could take advantage of its strengths in AI models, consumer brand recognition, and accumulated user data to build an ecosystem. Apart from this, the AI firm may also explore bundling hardware with subscription-based services. OpenAI, notably, has already signalled its interest in developing chips and other AI-centric hardware. It is believed to be building an AI device in partnership with former Chief Design Officer at Apple, Jony Ive. The AI firm also announced a multi-year strategic collaboration with Broadcom in 2025 -- a move that would see the two companies design and develop chips and systems to power the growing demands of AI compute.

Inside OpenAI's $6 Billion Plan to Build the Ultimate AI Phone

OpenAI is reportedly working on an AI-first smartphone, a device that aims to integrate artificial intelligence directly into its hardware rather than relying on conventional app-based systems. According to AI Grid, one notable detail is OpenAI's 2025 acquisition of a hardware startup co-founded by Jony Ive, the designer behind the iPhone. This move suggests a focus on combining advanced AI capabilities with a design philosophy that emphasizes simplicity and functionality. Early concepts hint at two possible directions: a fully integrated smartphone or a minimalist, wearable companion. Dive into how OpenAI might tackle key challenges such as privacy safeguards and the technical requirements of AI-focused hardware. Gain insight into potential design considerations, including battery optimization, streamlined user interfaces and the integration of high-performance processors for AI workloads. This feature also examines lessons from previous AI hardware projects to explore how OpenAI could balance usability, security and performance in its approach. OpenAI's vision is to make AI an integral part of your daily life, no longer confined to apps or software interfaces. Unlike traditional smartphones that rely on apps to deliver AI-driven features, this initiative seeks to embed AI into the very core of the device. The goal is to create a system that is not only more intuitive but also highly personalized and context-aware. The concept could manifest as either a screenless AI companion or a fully functional AI-first smartphone. In either case, the focus is on delivering a device that adapts to your needs in real time, offering a highly personalized experience. This approach has the potential to fundamentally change how you interact with technology, making it more natural and less reliant on manual input. In 2025, OpenAI made headlines with its $6 billion acquisition of a hardware startup co-founded by Jony Ive, the legendary designer behind Apple's iPhone. This move underscores OpenAI's commitment to combining innovative design with innovative functionality. Early reports suggest that the company is exploring minimalist, wearable designs that prioritize simplicity while delivering essential AI-driven features. The rumored AI-first smartphone, which could enter mass production by 2028, is expected to feature advanced processors from leading manufacturers like Qualcomm and MediaTek. These processors are specifically designed to handle the intensive computational demands of AI, making sure that the device delivers smooth and responsive performance. By focusing on both design and technical innovation, OpenAI aims to create a device that is not only functional but also aesthetically appealing and user-friendly. Become an expert in OpenAI with the help of our in-depth articles and helpful guides. One of the most significant challenges OpenAI faces is addressing the privacy concerns inherent in AI-driven devices. For these devices to function effectively, they require access to a substantial amount of contextual data, which raises important questions about how your data is collected, stored and used. Additionally, the potential for these devices to inadvertently capture information about those around you adds another layer of complexity to the privacy debate. To gain your trust, OpenAI will need to implement robust privacy measures. This could include transparent data practices, secure storage solutions and advanced encryption technologies to ensure that your information remains protected. Striking the right balance between functionality and privacy will be critical for the widespread adoption of this technology. Without clear and effective safeguards, even the most innovative device could struggle to gain acceptance. The AI hardware market is littered with examples of ambitious projects that failed to deliver on their promises. Devices like the Humane AI Pin and Rabbit R1 faced issues such as poor functionality, limited battery life and a lack of user convenience. These shortcomings serve as cautionary tales for OpenAI, highlighting the importance of addressing key challenges to create a product that is both reliable and user-friendly. Battery life, in particular, will be a critical focus area. To meet your expectations, the device must offer long-lasting performance without compromising its compact design. Additionally, the user interface must be intuitive, allowing you to interact with the device effortlessly. By learning from the mistakes of its predecessors, OpenAI has the opportunity to set a new standard for AI hardware. If successful, OpenAI's hardware initiative could have a fantastic impact on the broader AI ecosystem. By creating a unified platform, the device could integrate functionalities such as reminders, search, communication and more into a single, cohesive experience. This shift from software to hardware could give AI a tangible presence, much like how the iPhone transformed the way people accessed the internet. However, the path to success is fraught with challenges. OpenAI must navigate a complex landscape of technical, social and market barriers to deliver a product that meets your needs while addressing broader concerns about privacy and usability. The stakes are high, but the potential rewards could be equally significant, paving the way for a future where AI is seamlessly integrated into every aspect of your life. OpenAI's hardware plans remain in development, with multiple devices reportedly in the works. While product launches are rumored to occur between 2026 and 2028, the exact timeline and scope of these devices remain uncertain. Whether the final product takes the form of a screenless AI companion or a fully realized AI-first smartphone, OpenAI's efforts represent a bold step toward redefining how you interact with technology. The ultimate question is whether OpenAI can deliver a device that is functional, private and unobtrusive enough to transform your relationship with AI. If successful, this initiative could set a new benchmark for human-computer interaction, offering a glimpse into a future where AI is not just a tool but an integral part of your everyday life. Disclosure: Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. Learn about our Disclosure Policy.

OpenAI might start producing a smartphone with in-house chips

In case you don't remember, last year OpenAI announced a deal with Broadcom to develop custom AI chips to power its next-generation computer clusters. But, as Android Authority can tell us, OpenAI might be working to create smartphone processors as part of its plan for an AI phone. TF International Securities analyst Ming-Chi Kuo has said on X, that OpenAI is working with MediaTek and Qualcomm to create smartphone processors as part of its plan for an AI phone. Mass production should start in 2028, and we should expect finalized specs and suppliers in late 2026 or Q1 2027. Android Authority speculates, that OpenAI phones would be broadly in line with Google Pixel phones, which emphasize AI capabilities over raw horsepower. And perhaps the OpenAI chipset has extensive always-on functionality. According to analyst Ming-Chi Kuo, the Chinese supplier Luxshare and Foxconn rival will be the exclusive "system co-design and manufacturing partner". It seems that 2027 and 2028 will be interesting times to those following smartphone market.

OpenAI Eyes 'AI Agent' Smartphone With Qualcomm And MediaTek, Targets App-Free Experience By 2028: Report

OpenAI is reportedly exploring a move into smartphones designed around artificial intelligence agents, potentially reshaping how users interact with mobile devices. AI Agent Smartphone Concept Emerges The concept centers on replacing app-based interactions with a task-driven AI assistant that executes user requests directly. "Users are not trying to use a pile of apps. They are trying to get tasks done and fulfill needs through the phone," the report stated, framing the device as a shift in how smartphones are used. It also noted, "Only by fully controlling both the operating system and hardware can OpenAI deliver a comprehensive AI agent service," highlighting the importance of vertical integration for real-time AI performance. The proposed system would combine on-device processing for quick context awareness with cloud-based AI for more complex computing tasks. OpenAI Advances Hardware Shift Earlier, OpenAI reportedly moved its AI hardware project to Foxconn Technology Group, shifting production away from Luxshare and mainland China due to supply-chain concerns, with assembly planned in Vietnam or the U.S. The "Gumdrop" device, still in development, is expected to launch around 2026-2027 and strengthen Foxconn's role in OpenAI's hardware push. Separately, OpenAI planned to integrate its Sora AI video tool into ChatGPT while keeping it as a standalone app. The move aimed to boost ChatGPT usage and compete with Meta and Google in the growing AI video space, though it could increase computing costs. Qualcomm Rises On OpenAI Chip Reports Qualcomm closed at $148.85 on Friday, rising 11.12%, and extended its gains in Monday pre-market trading with another 10.89% jump. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

OpenAI Building A Custom Smartphone Processor With Qualcomm and MediaTek, Targeting 300-400 Million Annual Smartphone Shipments to Dethrone Apple's iPhone

It seems the ongoing AI mania will not relegate the good ol' smartphone obsolete after all, judging by the purported collaboration between OpenAI, Qualcomm, and MediaTek on a custom smartphone processor, raising huge red flags for Apple's iPhones in the process. We already know that OpenAI has been working on a range of consumer-oriented AI devices. These include AI-powered earbuds that bear the internal codename "Sweetpea" and might retail under the "Dime" brandname. The device would purportedly rely heavily on cloud-based AI processing, while featuring a 2nm Samsung Exynos chip for some on-device processing. OpenAI is also working on another consumer device that is reportedly shaped like a pen and sports a size similar to that of the Apple iPod Shuffle. The device bears the internal codename "Gumdrop," and is supposedly bereft of a dedicated screen. Additional details include: Now, however, the famous analyst, Ming-Chi Kuo, has penned an interesting post on X, disclosing that OpenAI might have relegated its planned range of consumer devices to the proverbial cryo unit for now, focusing its efforts instead on the familiar smartphone. As per Kuo's tidbits, OpenAI is already working with Qualcomm and MediaTek on a dedicated smartphone processor, with Luxshare likely to serve as the key assembler of the smartphone that is slated to eventually challenge the dominance of the Apple iPhone. According to OpenAI's vision of what the future of the smartphone will look like, people will soon stop using apps, relying instead on real-time AI agent inference using a combination of on-device and cloud-based models. In this 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. Critically, as per Kuo's assessments, "smartphones will remain the largest-scale device category for the foreseeable future." For OpenAI, the rationale is simple: it wants to control the entire stack and not just its AI models, emulating Apple's strategy of vertical integration to develop its own processor, hardware, and UI. According to the analyst, the smart phone's specifications will likely get finalized by late 2026 or Q1 2027, with OpenAI's high-end smartphone likely to entail annual shipment volumes of between 300 million and 400 million units. For Apple, of course, this presents a dire challenge, one that could feasibly end its reign in the smartphone space for good, especially as Apple's intrinsic AI capabilities are nothing to wax lyrical about, with the company already forced to rely on Google's Gemini AI models to power its upcoming revamped Siri voice assistant. OpenAI's strategy also fundamentally upends Apple's business model, which is all about milking revenue from its sprawling ecosystem of services built on smartphone apps. If there are no apps via the App Store, Apple really has no leadership.

Report: OpenAI is developing its first smartphone to compete with the iPhone

New reports reveal that the artificial intelligence giant has changed direction and is planning to launch a device in 2028. Rumors about OpenAI's ambitions in the hardware field are not new, but until recently the company made sure to clarify that it had no intention of producing its own smartphone. Now, it seems that this strategy is changing from one extreme to the other. According to a new report by the well-regarded analyst Ming-Chi Kuo, OpenAI has begun actively working on developing its first in-house smartphone, one designed to pose direct competition to Apple's iPhone. The device, which is expected to reach mass production in 2028, marks the company's transition from a software-only player to a hardware manufacturer with global influence. The project in question is not taking place in a vacuum. The company has been collaborating for some time with Jony Ive, who previously served as Apple's chief designer and was responsible for the iconic look of its products for decades. The team is working on a series of devices that integrate deep artificial intelligence, with the first product expected to be a smart speaker in the style of the HomePod, equipped with ChatGPT capabilities and a built-in camera. Alongside it, smart glasses and a smart lamp are also in development, but the phone is undoubtedly the centerpiece of the current move. According to data provided by Kuo, OpenAI has already begun talks with chip giants MediaTek and Qualcomm for the development of dedicated processors for its smartphone. Luxshare has been selected as the exclusive partner for system design and actual manufacturing. The emerging timeline indicates that the technical specifications and the final supplier list will be finalized toward the end of 2026 or the beginning of 2027, which will enable the planned launch a year later. The vision behind the device is not just "another phone", but the creation of a completely different user experience from what is currently familiar in the market. Kuo explains that artificial intelligence agents (AI Agents) will be the ones shaping the device's operation, causing it to feel and function in a fundamentally different way from the iPhone. It seems that at OpenAI they understand that the smartphone will remain a central tool in users' lives for many years, and that in order to lead in the AI field, they must also control the hardware that runs it. This stands in contrast to earlier assessments that dedicated AI devices would replace the smartphone. Even the CEO of Perplexity, Aravind Srinivas, recently reinforced this approach when he noted that artificial intelligence does not replace the iPhone, but rather makes it far more valuable for the user. Now, OpenAI is seeking to take that value into its own hands.

OpenAI Aims to Redefine Mobile Experience With AI-Powered Phone | PYMNTS.com

OpenAI did not immediately reply to PYMNTS' request for comment. Kuo wrote that OpenAI would make a phone because delivering a comprehensive AI agent service would require full control of both the operating system and the hardware and because smartphones will be the biggest category of devices for the foreseeable future. For users, an AI agent would redefine the smartphone by helping them get things done, rather than trying to use an assortment of apps, Kuo wrote. "OpenAI's advantages lie in its consumer brand, years of accumulated user data, and leading AI models," Kuo wrote. "Smartphone hardware is already highly mature, so OpenAI can work with the supply chain to develop the device. On the business model side, OpenAI may bundle subscriptions with hardware and build a new AI agent ecosystem with developers." There has been speculation about the sorts of devices OpenAI may be developing at least since the company acquired io, an AI device startup created in 2024 by former Apple chief design officer Jony Ive and Apple designers Scott Cannon, Evans Hankey and Tang Tan. It was reported at the time that OpenAI acquired io for just under $6.5 billion and planned to make it the devices division at OpenAI. In November 2025, OpenAI Chief Financial Officer Sarah Friar said the company is working with Ive on a multimodal device but that she could not share what it looks like or feels like. She added that "in a multimodal world for AI," devices would include text, sound and sight, and that she is looking forward to a device that doesn't require looking at a screen. It was reported in February that OpenAI's effort to develop AI-powered devices involves more than 200 people and that the team is working on devices that include a smart speaker, smart glasses and a smart lamp. The report added that the first device would be released no earlier than February 2027 and that the details could change.

The Real iPhone Killer Might Not Be a Phone at All | Investing.com UK

OpenAI is reportedly building an AI-first smartphone to challenge Apple's mobile dominance. The story traces back to Ming-Chi Kuo (TF International Securities) -- the same analyst whose Apple supply-chain intelligence has made him the most closely followed hardware analyst in the industry. That is precisely why the report moved markets. Today, your phone is built around icons: banking, calendar, Uber, Gmail, Slack, Maps. Kuo framed the shift on X: "Users are not trying to use a pile of apps. They are trying to get tasks done and fulfil needs through the phone." The next interface is not "open the app" -- it is "do the thing." Concept art shows the home screen replaced by live agent activity: book a flight, compile market data, update an itinerary -- all executed across services without ever tapping an icon. Agents are weak when they live inside someone else's sandbox. iOS and Android were built for apps, permissions, notifications and controlled access. An AI agent, by contrast, wants memory, context, tools, sensors, identity, payments -- and the permission to act on the user's behalf. That is an operating system problem. Not a chatbot problem. By owning the hardware stack, OpenAI could bypass the system-level restrictions Apple and Google currently impose. With ChatGPT nearing a billion weekly users, a daily-use device fits the consumer-reach ambition. The advantage: no legacy. A clean-slate interaction model. The disadvantage: users may not actually want a clean slate. Many would likely prefer their existing apps with AI assistance layered on top, which is precisely what Samsung, Google and Apple already offer. This is OpenAI's second hardware track. It is separate from the Jony Ive collaboration via io, which is reportedly developing a non-phone device -- a smart speaker with a camera first, then glasses, a lamp, and earbuds. Chief Global Affairs Officer Chris Lehane has stated that OpenAI's first hardware product will be announced in H2 2026, with several reports suggesting that initial device may be earbuds. The credibility gap is large. OpenAI has never shipped hardware. Every previous AI-first device has failed -- the Humane AI Pin lasted nine months before being permanently disabled. Rabbit R1 went the same way. The real question is not whether OpenAI can build a phone. They probably can. The question is whether people will switch, considering: Beyond the headline, the more durable thesis here is the one Qualcomm CEO Cristiano Amon has been articulating all year: AI agents will replace the mobile OS and apps as the primary interaction layer -- and hardware must be redesigned from scratch for continuous, power-efficient AI inference, not retrofitted with NPUs bolted on. Whether OpenAI's specific device ships or not, that architectural thesis is what is driving capex across the smartphone silicon supply chain, and it is what explains the 13% Qualcomm move on what is, fundamentally, still a rumour.

Apps could be dead? OpenAI AI agent phone plans leak ahead of 2028 launch

Final specifications could be locked by 2026-27, with mass production expected to begin around 2028 targeting the premium smartphone segment. After Codex, OpenAI seems to be entering the smartphone market in the next few years. The latest leaks suggest that the device will be built around AI-first experiences. And as per the industry sources, the company is said to be working with the chipmakers MediaTek and Qualcomm to develop custom processors, while Luxshare is expected to act as a key design and manufacturing partner. The rumours also suggest that the mass production can begin around 2028. The proposed device is said to centre on an AI agent approach where the focus will shift from using multiple apps to completing tasks via a unified intelligent system. The users will be able to rely on AI to manage workflows instead of navigating for different services. These AI agents will reportedly respond in real time and anticipate actions based on context. As per the sources, OpenAI sees tight integration between hardware and software as an essential way to deliver such an experience. Just by controlling both the layers, the company may enable continuous understanding of user behaviour, with on-device AI handling lightweight tasks while more demanding processes are managed via the cloud. Also read: Apple may unveil 10 products under new CEO John Ternus: iPhone Fold, smart glasses and what more to expect So far, smartphones have been among the most widely used computing platforms globally and OpenAI appears to view them as the ideal gateway for deploying large-scale AI services. The company's strengths in AI models, combined with its established consumer presence, can help it make a new ecosystem which blends hardware, software and subscription-based services. Industry estimates suggest that final specifications and supplier decisions could be finalised by late 2026 or early 2027. If the device targets the premium smartphone segment, it could enter a market that ships hundreds of millions of units each year, potentially creating new demand for advanced AI-focused chipsets. This is not the first time we have heard about the transition to AI agents. Previously, Nothing stated that the future of smartphones would shift from apps to AI, and you might not have to do all of your work manually.