OpenAI is preparing its own AI smartphone, according to analyst Ming-Chi Kuo, and the device is being framed as something far beyond a handset with ChatGPT preloaded. The reported concept centers on AI agents replacing conventional apps, with 2028 named as the target for mass production.
AI agents instead of the app model
Kuo said the phone may avoid the traditional app structure entirely and rely on AI agents to carry out user requests. That would mark a sharp break from the current mobile model, where Apple and Google control app ecosystems and key layers of system access, limiting how deeply outside AI services can operate on smartphones.
By building its own hardware and software stack, OpenAI could remove those constraints and place AI across core device functions. Kuo also argued that owning the device layer would let OpenAI maintain a constant understanding of user context rather than working through isolated app sessions. The reported setup would combine on-device small models with cloud-based large models, balancing response speed, privacy handling, and heavier compute needs.
MediaTek, Qualcomm, and Luxshare named in the project
Kuo’s report linked the effort to several major hardware partners. He said OpenAI plans to work with MediaTek and Qualcomm on dedicated smartphone chips, while Luxshare is expected to serve as a joint design and manufacturing partner. Under the timeline he described, final phone specifications and component suppliers would be settled by late 2026 or the first quarter of 2027, with large-scale production in 2028.
First hardware launch may arrive earlier through AI earbuds
Before any smartphone reaches the market, OpenAI may test its hardware ambitions with a different device category. Chris Lehane, OpenAI’s vice president of global affairs, had said earlier this year that the company was on track to release its first hardware product in the second half of 2026. Multiple reports point to that debut product being a distinctively designed pair of AI true wireless earbuds.
The source article also noted that ChatGPT’s weekly active users are nearing 1 billion. At that scale, a consumer hardware product would give OpenAI a direct daily touchpoint with users. If Kuo’s account holds, OpenAI’s push into mobile hardware would open a new front against Apple and Google, shifting competition from models and software into the device layer itself.