In the age of AI-first computing, OpenAI is reportedly preparing to step beyond software and into consumer hardware, with plans that could eventually include a smartphone, according to analyst Ming-Chi Kuo. If realised, the move would put the company in direct competition with Apple and Samsung while aiming to reshape how smartphones operate in the AI era.
Kuo suggests that OpenAI is working with chipmakers Qualcomm and MediaTek to develop custom smartphone processors, while Luxshare is expected to handle design and manufacturing. The device, still unconfirmed by the company, is said to focus heavily on AI agents rather than traditional app-based interfaces.
The idea behind the potential device is to make interactions more seamless by reducing dependence on apps and instead using AI as the primary interface. According to Kuo, smartphones remain the most effective devices for capturing real-time user context, including location, activity, and communication patterns, making them ideal for advanced AI systems.
Unlike traditional smartphones that rely on multiple apps, the proposed AI-first model would let digital assistants handle tasks like messaging, scheduling, bookings, and file management based on user intent, aligning with the emerging “agentic AI” trend already seen in early form at companies like Google and Samsung.
OpenAI has not confirmed any smartphone plans, but it has hinted at dedicated AI hardware. Reports suggest a potential device could arrive as early as the second half of 2026, with prototypes including simple, possibly screenless designs.
OpenAI’s acquisition of Jony Ive’s design startup IO has fuelled speculation that it is working on tightly integrated AI hardware combining software and devices in a single ecosystem. However, analysts warn that entering the smartphone market would be extremely challenging, given Apple’s dominant iPhone ecosystem and its strong, well-established hardware-software integration.