Rumours around OpenAI's hardware ambitions have been circulating for some time, initially pointing toward AI-powered earbuds as its first consumer device. However, a new note from industry analyst Ming-Chi Kuo suggests the company may also be working on something far more ambitious: a smartphone developed in collaboration with MediaTek, Qualcomm, and Luxshare.
Kuo, who has a strong track record of reporting on Apple's hardware roadmap, claims that OpenAI is exploring the development of a custom smartphone chip alongside MediaTek and Qualcomm. Luxshare, which already plays a major role in global electronics manufacturing, is expected to act as both a co-design and production partner. This would effectively give OpenAI a foothold across the entire hardware stack, from silicon to final assembly.
AI Agents Will Replace Apps
At the core of this reported project is a shift away from the traditional app-based smartphone experience. Instead of relying on individual apps, the device could be built around AI agents capable of executing tasks on behalf of users. Today, platforms controlled by companies like Apple and Google tightly regulate app distribution and system-level access, which in turn limits how deeply third-party AI systems can integrate. By building its own hardware and software ecosystem, OpenAI could remove these constraints and deploy AI more broadly across the user experience.
This approach aligns with OpenAI's growing scale. With ChatGPT reportedly approaching a billion weekly users, the company has a strong incentive to extend its reach beyond software and into everyday consumer hardware. A dedicated device could serve as a direct channel for delivering its AI services, while also strengthening its position in an increasingly competitive AI landscape.
Moving Beyond Apps
Several companies working on AI-driven tools and so-called "vibe coding" platforms are already imagining a future where traditional apps become less relevant. Carl Pei, for instance, recently stated at SXSW that apps could eventually disappear altogether, replaced by more fluid, task-oriented AI systems. OpenAI's reported smartphone strategy appears to fit within this broader shift.
Kuo also suggests that a key advantage of a smartphone lies in its ability to continuously capture user context. Unlike standalone apps, a device-level AI system could observe patterns, habits, and real-time activity, enabling more personalised and proactive responses. To support this, the phone is expected to rely on a hybrid architecture, combining smaller on-device AI models for immediate tasks with more powerful cloud-based models for complex processing.
In terms of timeline, Kuo notes that the device's specifications and supplier ecosystem could be finalised by late 2026 or early 2027. Mass production, however, is not expected to begin until 2028, indicating that the project is still in its early stages.
Separately, OpenAI has already hinted at its near-term hardware plans. Earlier this year, Chief Global Affairs Officer Chris Lehane said the company is on track to announce its first hardware product in the second half of 2026, which multiple reports suggest could be a pair of uniquely designed earbuds, according to a TechCrunch report.
