OpenAI explores AI phone in partnership with MediaTek, Qualcomm, Luxshare

In a move beyond software, OpenAI is reportedly partnering with Qualcomm, MediaTek and Luxshare to develop an AI-focused smartphone with production expected by 2028

US-based artificial intelligence entity OpenAI is reportedly collaborating with chipmakers MediaTek and Qualcomm, and China-based consumer electronics component manufacturer Luxshare to develop an AI-first mobile phone. According to TF International Securities (HK) analyst Ming-Chi Kuo, while MediaTek and Qualcomm will be involved jointly to make processors, Luxshare, on the other hand, will be the exclusive system co-design and manufacturing partner for the phone. Mass production of the said device is expected to commence in 2028.

Why is OpenAI moving towards smartphones

There hasn’t been any official confirmation in this regard, but as per Kuo, only by fully controlling both the operating system and hardware can OpenAI deliver a comprehensive AI agent service, which is why it is possible that CEO Sam Altman may have decided to move in this direction.

 

 

Kuo explains that right now, tools like ChatGPT run on iPhone or Android, where they are constrained by system-level permissions. That means even simple tasks like completing a food order can require multiple steps. Owning the hardware and operating system changes that equation entirely, allowing an AI system to directly access functions without being restricted by another company’s rules.

Additionally, smartphones are the only devices that consistently capture users’ full real-time state. That context is critical for AI to move from reactive responses to genuinely useful assistance. Without it, the system remains capable, but limited.

 

Furthermore, Kuo explained that smartphones continue to be the most widely used personal computing devices in the world. Smart speakers are largely confined to homes, and wearables like smart glasses are still in an early stage. But with billions of phones in circulation, the platform that controls the smartphone layer effectively controls the largest distribution channel for AI.

What will an OpenAI phone interface look like

Kuo shared a concept design drawing of what the interface on the OpenAI phone may look like. While normal phones like Android and iPhones have icons and grids, where you have to find, click and operate by yourself, OpenAI’s phone may completely change this. As per the analyst, the users’ goal is not to open a certain app but directly tell the phone what he wants done, and the rest will be handled by the AI agent. 

 

So, apps will still be there in the OpenAI phone but one may never have to run them manually. Furthermore, OpenAI might integrate cloud-based and edge-side AI in it. For the uninitiated, in simpler word it means that it will typically process data locally for instant, low-latency, and private decision-making, but for high intensity tasks, it may rely on cloud based AI.

 

As per the picture shared by Kuo, the phone will focus on tasks rather than icons, as in how many tasks are pending, or how many have been completed. The tasks may be like booking flight tickets, getting briefing on markets, reminder to reply to important mails, reminder for family dinner and policy premium payment. There will be percentages against these tasks to show it’s current status. Furthermore, it shows four sections mainly – Home, Actions, Memory and Inbox. 

Other hardware products of OpenAI

OpenAI is not just working on smartphone but a range of hardware products, in collaboration with former Apple design chief Jony Ive. For starters, according to reports, the first hardware product is expected to be a palm-sized, screen-less device that can take audio and video cues from physical environments and respond to users’ requests. It may be equipped with a small projector to cast content onto surfaces. The device will reportedly be always on and communicate with users through a camera, a microphone and a speaker.

 

OpenAI’s hardware ambitions aren’t expected to stop just here, though. Beyond the AI-focused product and smartphone already in discussion, the company is reportedly exploring categories like smart glasses, a digital voice recorder, and a wearable AI pin, pointing toward a broader push to build an ecosystem of AI-first devices aimed at reshaping how users create and interact.