New Delhi: OpenAI may be preparing a much bigger hardware play, and this time the target could be the smartphone. Supply chain analyst Ming-Chi Kuo has reported that OpenAI is working with MediaTek, Qualcomm and Luxshare on a new AI-focused phone that may enter mass production in 2028.
This may not be a regular phone built around app icons. Kuo says OpenAI is looking at a device centred on AI agents, where the phone understands the user’s real-time context and helps finish tasks more directly.
OpenAI’s AI phone plan: What Kuo says
In his post on X, Kuo wrote, “OpenAI is working with MediaTek and Qualcomm to develop smartphone processors, with Luxshare as the exclusive system co-design and manufacturing partner. Mass production is expected in 2028.”
That puts three major names in the frame. MediaTek and Qualcomm may work on processors. Luxshare may handle system design and manufacturing. For readers who follow Apple supply chain stories, Luxshare is already a known name.
Kuo also added a sharp line on why this matters: “Users are not trying to use a pile of apps. They are trying to get tasks done and fulfill needs through the phone.”
That one sentence explains the whole pitch. Less tapping through 12 apps. More asking the phone to just get the job done.
Why OpenAI may want its own smartphone
Kuo says OpenAI may need control over both hardware and operating system to deliver a full AI agent service. He also said the smartphone is the one device that captures a user’s full real-time state, including context such as location.
That matters for AI agents. A phone knows where you are, what you are doing, what messages need attention, and what task may come next. Slightly scary? Yes. Useful? Also yes, if handled carefully.
Cloud AI and on-device AI could work together
Kuo expects the phone to mix on-device AI with cloud AI. Basic tasks and context understanding may happen on the device. Bigger and heavier AI jobs may move to the cloud.
He also said suppliers may be finalised by late 2026 or the first quarter of 2027. If OpenAI targets the global high-end smartphone market, Kuo points to a segment of about 300 million to 400 million units a year.