OpenAI could be preparing to enter the hardware space with its first AI-focused smartphone, according to TF Securities analyst Ming Chi Kuo. The device is said to be in active development, with mass production potentially targeted for the first half of 2027, El.kz citesdigital trends.
While OpenAI has not officially confirmed these plans, supply chain insights by Kuo suggest the company is accelerating efforts to compete in the emerging category of AI agent-driven devices.
A New Push Into AI Hardware
The reported smartphone is expected to focus heavily on on-device AI capabilities rather than traditional smartphone features. This aligns with a broader industry trend where companies are moving toward “AI agent” devices – products designed to perform tasks, understand context, and interact more autonomously with users.
One of the key details emerging from the report is OpenAI’s potential partnership with MediaTek. The chipmaker is currently seen as the frontrunner to supply the device’s processor, which could be based on a customised version of a future Dimensity chipset. The processor is expected to be manufactured using TSMC’s next-generation process, indicating a focus on efficiency and performance.
Specs Built Around AI Workloads
Unlike conventional smartphones, this device is expected to prioritise AI-specific hardware. Reports point to a dual NPU (Neural Processing Unit) architecture, designed to handle layered AI tasks more efficiently. This could enable faster on-device processing for tasks like real-time language understanding, visual recognition, and contextual computing.
Why OpenAI Is Pushing Into AI Smartphones
Industry insights suggest OpenAI’s move into smartphones is driven by the need to fully control both hardware and software to deliver a true AI agent experience. Unlike current devices that rely on apps, AI-first phones are expected to shift toward task-based interactions, where users focus on outcomes rather than navigating multiple applications. Smartphones also provide continuous real-time user context – such as location, activity, and usage patterns – which is critical for AI inference.
Reports indicate OpenAI is working with MediaTek and Qualcomm on custom processors, with Luxshare as a key manufacturing partner, targeting mass production around 2028. The approach will likely combine on-device AI for real-time processing with cloud-based AI for more complex tasks. OpenAI’s strengths in consumer reach, data, and AI models position it well to build a new ecosystem, potentially bundling hardware with subscription services while driving the next major smartphone upgrade cycle.
OpenAI’s potential entry into hardware reflects a shift in how AI companies are approaching product ecosystems. Instead of relying solely on software platforms, companies are exploring dedicated devices to better control performance, privacy, and user experience.