OpenAI is accelerating development of its first smartphone, with mass production now targeted for the first half of 2027. That is a full year ahead of the 2028 timeline analyst Ming-Chi Kuo reported just last week when he first revealed the project.

Kuo, who has a long track record of accurate Apple supply chain predictions, posted the updated timeline on X on May 5. Two strategic drivers are pushing the acceleration: OpenAI’s planned IPO (a shipping hardware product strengthens the investor narrative) and intensifying competition in AI agent phones.

Processor and Architecture

MediaTek has emerged as the frontrunner to become sole processor supplier, according to MacRumors. The device will use a customized version of the Dimensity 9600, built on TSMC’s next-generation N2P node in the second half of 2026. Qualcomm was previously under consideration but appears to have lost ground.

The chip’s architecture prioritizes AI workloads over conventional smartphone performance metrics, per Android Authority:

  • ISP as headline spec: An enhanced HDR pipeline improves real-world visual sensing, enabling the phone’s camera to function as a continuous perception layer for the AI agent.
  • Dual-NPU architecture: Two AI processors handle heterogeneous compute (vision and language simultaneously).
  • LPDDR6 + UFS 5.0: Fast memory and storage to reduce bottlenecks during on-device inference.
  • pKVM + inline hashing: Hardware-level security isolation for agent processes.

Shipment Projections

Kuo estimates combined 2027-2028 shipments could reach approximately 30 million units if development stays on track, according to 9to5Mac. That is an ambitious target for a first-generation device from a company with no hardware shipping history.

The Jony Ive Question

OpenAI acquired Ive’s startup io Products in May 2025, and the designer has been working on a screenless AI device described as a “third core device” after a MacBook Pro and iPhone. That product, now revealed as a smart speaker with camera, is separately targeting early 2027 release.

How the phone and Ive’s screenless device coexist in OpenAI’s product line remains unclear. Kuo argues that fully controlling both operating system and hardware is the only way to deliver a comprehensive AI agent service. OpenAI CEO Sam Altman reinforced this on X last week, writing that now is the right time to “seriously rethink how operating systems and user interfaces are designed.”

The Agent-First Mobile Bet

The phone represents a direct challenge to Apple’s iPhone, but on different terms. Where Apple layers AI features onto an app-centric OS, OpenAI is building hardware around the agent paradigm: a device where the primary interface is an autonomous agent that perceives, reasons, and acts, rather than a grid of app icons. Kuo expects AI agents to shift how people interact with phones, moving from launching individual apps to completing tasks within a seamless, context-aware interface.

Luxshare Precision Industry, an existing Apple supplier, is reportedly the exclusive manufacturing partner for assembly. OpenAI has made no public comment on the device.