OpenAI may not be looking to replace smartphones after all. Instead, it could be working on building one. A new report indicates that the company is developing its own AI focused handset designed to transform how people interact with their devices rather than moving away from them.
What is being planned
According to noted analyst Ming-Chi Kuo, the OpenAI smartphone could run on custom chips developed in collaboration with MediaTek and Qualcomm. Manufacturing may be handled by Luxshare, a firm that also assembles products for Apple.
Kuo suggests that key decisions around specifications and suppliers could be finalized by late 2026 or early 2027, while mass production is currently expected to begin in 2028.
He believes that building a smartphone would allow OpenAI to control both hardware and software, which is essential for delivering advanced AI-driven services. Smartphones also provide real-time user context, enabling AI systems to respond more effectively. Despite discussions around new device categories, he maintains that smartphones will continue to play a central role for years to come.
Business model and ecosystem
The report also suggests that OpenAI could combine device sales with subscription-based services. In addition, the company may build a developer ecosystem focused on AI agents that complete tasks rather than traditional apps that users open manually. This could shift mobile development toward outcomes instead of interfaces.
Separate work with Jony Ive
The smartphone effort is said to be separate from OpenAI’s collaboration with Jony Ive and his startup IO. That partnership, reportedly backed by a 6.4 billion dollar deal, is focused on new types of devices such as smart glasses, camera-enabled speakers, and AI companions.
OpenAI CEO Sam Altman has previously described those products as alternatives to the constant engagement associated with smartphones. The first device from that collaboration is expected to arrive around early 2027.
Kuo also outlined a possible concept for the OpenAI phone. Instead of a traditional app grid like on an iPhone, the interface could revolve around a live stream of tasks managed by AI.
In this model, the screen may display multiple activities at once, including booking travel, preparing reports, drafting emails, managing reservations or handling renewals, all updated in real time. Simpler tasks could run directly on the device, while more complex processes might rely on cloud based systems.
The concept places OpenAI alongside other efforts to rethink mobile computing. Rather than simply adding AI features to existing smartphones, the company appears to be exploring a system built around task execution from the ground up. For now, the project remains a long term initiative, with any commercial launch still several years away.
