OpenAI, the AI giant that popularised generative AI technology with its ChatGPT chatbot, is now looking to expand into hardware. The San Francisco-based AI company is exploring the development of a smartphone, which will position itself as a competitor to established players like Apple and Samsung.
But unlike other brands, whose smartphones depend on third-party apps, its device would function as an AI agent, which would allow users to complete tasks directly through AI instead of switching between multiple applications.
OpenAI Smartphone: Launch Timeline And What's Being Planned?
According to an X post by well-known tech analyst Ming-Chi Kuo, OpenAI is fast-tracking the development of its first AI agent smartphone.
Kuo revealed that the crucial decisions around specifications and suppliers could be finalised by the end of 2026 or early 2027 and and it is expected to go into mass production as early as the first half of 2027.
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What to expect from an OpenAI phone?
In his earlier post on X, Kuo wrote that OpenAI has teamed up with both MediaTek and Qualcomm to develop the processor for the smartphone.
In his latest post, the supply chain analyst noted that MediaTek is currently leading the race to supply a customised processor. The processor is expected to be based on Dimensity 9600 and will be built using TSMC's advanced N2P process sometime in late 2026.
"Other key specs include a dual-NPU architecture for heterogeneous AI compute, LPDDR6 + UFS 5.0 to ease memory bottlenecks, and pKVM + inline hashing for security. If development stays on track, combined 2027–2028 shipments could reach around 30 million units," Ming-Chi Kuo wrote in an X post.
Why does OpenAI want to build a smartphone?
In his earlier note, Kuo suggested that OpenAI is developing a smartphone because it remains the only device capable of capturing a user's complete, real-time context, which is considered the essential input for AI agents to work properly.
Kuo also suggests that OpenAI may be fast-tracking its plans due to a potential IPO.
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OpenAI President Greg Brockman, while appearing as a witness in the ongoing trial on Elon Musk's civil lawsuit against OpenAI, recently confirmed that the company is preparing for an IPO. According to Kuo, the prospect of going public could make the company more appealing to investors.
Another reason, Kuo suggests, could be the growing competition in AI-powered smartphones, as companies race to deliver more advanced AI capabilities.
Ming-ChiKuo predicts that if everything goes as planned, the total number of units shipped over 2027 and 2028 combined could be about 30 million.
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