OpenAI Targets AI-Agent Smartphone Market with 2028 Launch Plan

OpenAI is reportedly developing a smartphone that replaces traditional apps with AI agents. The design calls for custom processors co-developed with Qualcomm and MediaTek and for Luxshare Precision Industry to serve as the exclusive system co-design and manufacturing partner. Analyst Ming-Chi Kuo says mass production is slated for 2028.

Qualcomm teams with OpenAI, MediaTek on AI chip

The plan follows OpenAI’s May 2025 purchase of io Products, Jony Ive’s hardware startup. Earlier reports linked the venture to smart speakers, glasses or a lamp, but the current phone design targets an AI-enabled handset.

OpenAI is building an AI agent smartphone to rival the iPhone by 2028: report — TFN

• May 2025 – OpenAI acquires io Products.

OpenAI Weighs Phone Built Around AI Agents

• April 2026 – Analyst Ming-Chi Kuo reveals AI-agent phone partnership with Qualcomm, MediaTek and Luxshare.

Qualcomm teams with OpenAI, MediaTek on AI chip

• Late 2026 – Q1 2027 – Specifications and supplier list to be finalized.

PetaPixel

• 2028 – Mass production slated to start.

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ChatGPT serves over 500 million weekly active users, mostly via third-party platforms. Kuo forecasts 300–400 million phone shipments annually, potentially exceeding iPhone sales. Qualcomm shares rose ~13 % after the report, while Apple fell 1.7 %. An AI-agent phone could bypass app stores, give OpenAI a direct subscription channel, and challenge Apple and Samsung, which together hold ~40 % of the market.

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OpenAI declined comment. Qualcomm, MediaTek and Luxshare have not responded. Kuo stressed that full OS and hardware control is needed for a comprehensive AI-agent service. Altman’s X post called it a good time to rethink operating systems and interfaces.

Qualcomm teams with OpenAI, MediaTek on AI chip

Analysts doubt a new OS can compete with Android and iOS and question Luxshare’s ability to match Foxconn’s scale. Privacy advocates warn that continuous real-time state tracking may clash with Apple’s data-minimalism. Critics cite past hardware failures of service-centric firms.

How-To Geek

Sources differ on whether the device will run Android or a proprietary OS, and some envision smart glasses or earbuds instead of a handset. No official specs have been released.

TechRadar

• “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.” — Ming-Chi Kuo, TF International Securities analyst

PetaPixel

• “Only by fully controlling both the operating system and hardware can OpenAI deliver a comprehensive AI agent service.” — Ming-Chi Kuo

OpenAI Weighs Phone Built Around AI Agents

• “Feels like a good time to seriously rethink how operating systems and user interfaces are designed.” — Sam Altman, CEO, OpenAI

Reversing course, OpenAI quietly builds a smartphone to rival iPhone

• “AI won’t disrupt the iPhone.” — Aravind Srinivas, CEO, Perplexity

9to5Mac

Kuo expects final hardware specifications by late 2026 or early 2027. OpenAI may announce its first hardware product in the second half of 2026, with mass production slated for 2028.

OpenAI teams up with Qualcomm and MediaTek on AI-native smartphone