OpenAI is reportedly working on its own AI smartphone

OpenAI is reportedly developing its own AI smartphone, according to supply chain analyst Ming-Chi Kuo. Kuo’s latest supply chain checks revealed that OpenAI will be working with MediaTek and Qualcomm as chip partners, and Luxshare Precision Industry as the exclusive manufacturing partner.

Kuo believes that OpenAI wants to ride the current trend of AI agents and even take it a step further by designing an entire ecosystem around it. Right now, most AI agents are run on PCs or Macs, and users mostly communicate with them through messaging apps like Telegram and Discord. Having a dedicated piece of hardware could definitely make running AI agents more effective. And a smartphone is perfect for this because it’s the only device that captures a user's complete real-time context, including location, activity, communication, and surroundings.

Running an AI agent through a dedicated smartphone could instantly provide it with real-time context about the user. That, of course, means that OpenAI could capture even more user data through agent pipelines.

Coincidentally (or not), OpenAI CEO Sam Altman posted on X around the same time Kuo published his article that it “feels like a good time to seriously rethink how operating systems and user interfaces are designed.” This could mean that OpenAI could potentially work on a new operating system that will power its hardware.

This latest report actually contradicts previous reports about OpenAI’s hardware plans, which have centered on a range of non-phone devices developed with former Apple design chief Jony Ive, whose startup io Products was acquired for $6.5 billion in 2025. That lineup reportedly includes a smart speaker, smart glasses, a smart lamp, and potentially earbuds.

The first hardware announcement from OpenAI is expected in the second half of 2026. As for a smartphone, Kuo reports that mass production is targeted for 2028. Chip specifications and additional suppliers are expected to be locked in by late 2026 or early 2027.

Once OpenAI comes through with its hardware plans, it will have built an entire ecosystem where users won’t need to own a device from any other manufacturer. As the AI race heats up, don’t be surprised if other AI vendors follow suit.

Source: Ming-Chi Kuo on X