According to supply chain findings published in late April by analyst Ming-Chi Kuo, OpenAI is developing a smartphone designed to compete with the iPhone, and the timeline has already been accelerated once. Originally expected to reach mass production in 2028, the device is now believed to be on track for the first half of 2027, with combined shipments estimated at around 30 million units in 2027 and 2028 if development continues.
Kuo says the gadget will be a “phone for an AI agent”, with a persistent, contextual user interface rather than specific applications. The logic behind this approach is that only smartphones equipped with sensors capable of simultaneously gathering location, activity, communication, and real-time contextual data will AI agents be able to reason.
According to Kuo, to provide this type of integrated product experience, OpenAI must control both hardware and software platforms.
OpenAI Smartphone Details (Expected)
Reportedly, the device is expected to be powered using a modified Dimensity 9600 chip developed by MediaTek using TSMC’s N2P technology, which is planned to be launched in the second half of 2026. Although Kuo initially mentioned both MediaTek and Qualcomm as potential chip makers, he later revealed that MediaTek had a better chance of being the sole supplier.
Luxshare Precision Industries appears to be the only manufacturer of phones. It is reported to come with two AI processors for parallel processing of vision and language tasks, a camera unit possibly supplied by Sunny Optical, and an advanced HDR system in its ISP for better perception of the world.
However, with the May 2025 acquisition of IO Products, a company founded by Apple’s competitor Jony Ive, worth $6.5 billion, both Ive and OpenAI’s CEO, Sam Altman, assured that neither had any intention of developing a device with a display screen.
The first device resulting from the collaboration is being dubbed a smart speaker with a camera that will cost around $200 and $300 and will likely not be introduced until the first quarter of 2027.
The new startup has recruited 40 Apple staff members so far, including designers Evans Hankey, Tang Tan and Scott Cannon. This prompted tech giant Apple to provide its iPhone product design team with retention bonuses worth up to four million dollars in restricted stock units.
