OpenAI teams with MediaTek and Qualcomm on custom chips for AI smartphone launching in 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.

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 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 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.

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.

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 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.

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.

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.

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.