OpenAI may not be trying to replace the smartphone after all. Instead, it could be building one. A new report suggests that the company is working on its own AI-focused handset, which aims to change how people interact with their devices rather than moving away from them.
OpenAI Smartphone: What’s Being Planned
According to well-known tech analyst Ming-Chi Kuo, the OpenAI smartphone could be powered by custom chips developed with MediaTek and Qualcomm. Manufacturing is expected to be handled by Luxshare, which also assembles devices for Apple.
Kuo says key decisions around specifications and suppliers could be finalised by late 2026 or early 2027. Mass production is currently targeted for 2028.
He argues that building a mobile phone gives OpenAI full control over both hardware and software, which is needed to deliver AI-driven services. He also points out that smartphones capture real-time user context, which helps AI systems respond more accurately. Despite talk of new device categories, he believes phones will remain widely used in the coming years.
Business Model and Ecosystem
Furthermore, the report suggests that OpenAI could combine hardware sales with subscription services. It may also create a developer ecosystem focused on AI agents that complete tasks, instead of traditional apps that users open manually. This approach could shift how developers build for mobile devices, with a focus on outcomes rather than interfaces.
Separate Work with Jony Ive
The smartphone project is said to be independent of OpenAI’s collaboration with Jony Ive and his startup io. That effort, backed by a reported $6.4 billion deal, is aimed at new types of devices such as smart glasses, camera-enabled speakers and AI companions.
OpenAI CEO Sam Altman has earlier described those products as alternatives to the constant engagement linked with smartphones. The first device from that partnership is expected around early 2027.
Moreover, Kuo also shared a concept of how the OpenAI mobile phone could work. Instead of an app grid like on an iPhone, the interface may centre on a live stream of tasks handled by AI.
In this model, the screen could show multiple actions at once, like travel bookings, preparing reports, drafting emails, managing reservations or handling renewals, all updated in real time. Simpler tasks may run directly on the device, while more complex ones could be processed through cloud-based systems.
The idea puts OpenAI alongside other attempts to rethink mobile computing. Rather than adding AI features to existing phones, the company appears to be exploring a system built around task execution from the ground up. For now, the project remains a long-term plan, with any commercial launch still a few years away.
