OpenAI is reportedly working on a new type of smartphone designed around AI agents, where core functions are handled by AI rather than traditional standalone apps. Industry expert Ming-Chi Kuo says the firm is working alongside MediaTek and Qualcomm to engineer custom mobile chipsets, with Luxshare tapped as the sole collaborator for integrated design and production operations.
This initiative reflects OpenAI’s expanding focus on physical products, especially as it seeks to build devices optimised for AI-first interactions instead of traditional software-dependent functionality.
Instead of depending on countless individual applications, OpenAI’s planned mobile device would enable people to engage with intelligent agents that comprehend their requirements and execute actions seamlessly through the handset. This strategy represents a departure from software-heavy platforms toward agent-driven artificial intelligence interactions.
Kuo notes that the device is expected to combine both on-device and cloud-based AI in a closely linked system. The phone would use local processing to constantly interpret user context while keeping battery use, memory load, and smaller model operations efficient.
For heavier or more complex tasks, processing would be shifted to cloud AI services.
OpenAI joins hands with MediaTek, Qualcomm
Regarding chipsets, OpenAI has aligned with MediaTek and Qualcomm, with detailed specifications and vendor agreements anticipated to be settled by late 2026 or early 2027’s opening months. Drawing parallels to MediaTek’s partnership with Google on the TPU Zebrafish processor, Kuo indicates a single chip architecture might yield earnings equivalent to roughly 30 to 40 AI agent mobile processors.
Concerning production, OpenAI has allegedly partnered with Luxshare for integrated engineering and construction. “With an early position in the supply chain, Luxshare could become a leading beneficiary in the next smartphone generation,” Kuo said.
But why is OpenAI making a smartphone?
According to Kuo, OpenAI’s interest in building a smartphone is driven by a few key factors.
Owning both the hardware and the operating system would let the company create a tightly integrated AI-driven experience without relying on third-party platforms. This is similar to how Apple controls both iOS and the iPhone — you need them both working together to make the user experience better.
Smartphones also provide constant access to real-time user data, making them ideal for delivering context-aware AI responses. AI models, after all, need to feed on data constantly.
On top of that, they remain the most widely used consumer device globally, ensuring massive reach and long-term relevance. With concepts like Humane Pin ending up as a failure, smartphones remain the most effective way to embed these AI agents into our lives.