OpenAI Could Launch Its Own AI Smartphone in 2028

It looks like OpenAI may be planning to enter the smartphone market, if we go by recent leaks. In a post on X, supply chain analyst Ming-Chi Kuo said that OpenAI is co-developing a custom smartphone processor with MediaTek and Qualcomm. In addition, Luxshare is the "exclusive system co-design and manufacturing partner". Kuo also says that mass production of the chipset is expected in 2028 and suppliers should be locked in by late 2026 or Q1 2027.

Kuo Says OpenAI Phone is Designed for AI Agents 

Kuo notes that AI agents are quietly redefining what a phone is and people don't want to juggle between a "pile of apps". Users want tasks to be done and the interface should follow that. And to pull this off, OpenAI would need control over both the OS and the hardware so it can integrate AI agents directly into the phone's real-time context.

On the chip side, OpenAI would also want to prioritise power consumption, memory hierarchy and on-device small-model execution. Of course, heavier tasks would be sent to cloud AI.

Interestingly, just yesterday, OpenAI CEO Sam Altman posted on X that the time has come to "seriously rethink how operating systems and user interfaces are designed". Altman also floated the idea of a new internet protocol that works for both people and agents. This post was made just hours before Kuo's leak and it's hard to ignore.

Image Credit: X/@sama

Coming back to OpenAI's effort to build AI devices, the company bought Jony Ive's startup IO in 2025 to build a screenless AI device. It's a separate device from the rumoured smartphone and in fact, OpenAI is reportedly building a "family" of AI devices. That said, nothing has actually shipped and OpenAI's first companion device might launch in 2027. An earlier report said that OpenAI is also working on an AI smart glasses and an audio-only device called 'Dime'.

Having said all of that, OpenAI has spent the last couple of months actively cutting "side quests". First, it shut down the Sora video app and paused many new features and developments to create a "superapp". Now, against this backdrop, it's unclear whether OpenAI's hardware ambitions will finally materialise or not.

For now, Kuo says OpenAI could eventually target the high-end smartphone segment, which moves around 300 to 400 million units per year. It's a massive market and OpenAI would want a foothold  here. But until the company actually ships any consumer device, take these claims with a grain of salt.