OpenAI has accelerated development of its first AI agent smartphone, moving the mass production target from 2028 to the first half of 2027, according to supply chain analyst Ming-Chi Kuo. The timeline shift reflects both OpenAI’s planned initial public offering and intensifying competition in AI agent devices.
Hardware Specifications
Kuo reports the device will use a customized version of MediaTek’s Dimensity 9600 processor, built on TSMC’s N2P node in the second half of 2026. MediaTek appears “better positioned to become the sole processor supplier,” according to Kuo’s analysis, though Qualcomm was also named as a chip partner in earlier reporting. Luxshare Precision Industry is the exclusive manufacturing partner.
The device’s standout specification is its image signal processor, featuring an enhanced HDR pipeline designed to improve real-world sensing for the AI agent. The phone will use two dedicated AI processors for handling different tasks simultaneously, such as vision and language. Fast memory and storage complement security features that isolate processes.
Kuo projects combined 2027-2028 shipments of approximately 30 million units if development stays on track. He argues that fully controlling both the operating system and hardware is the only way for OpenAI to deliver a comprehensive AI agent service, as MacRumors reported.
The IPO Connection
Two factors are driving the accelerated timeline. First, a compelling hardware product strengthens OpenAI’s narrative for investors if it proceeds with an IPO. Second, the competitive landscape for AI agent devices is heating up: Apple is reportedly working on smart glasses, AirPods with cameras, and an AI pendant. Google’s Remy agent is being tested inside the Gemini app for autonomous task execution across Workspace services.
The phone also creates potential tension with Jony Ive’s non-phone AI device, which OpenAI acquired through its purchase of io Products in May 2025. That device, described as a smart speaker with camera, targets early 2027 release. 9to5Mac noted that launching a smartphone on the same timeline “sounds extremely ambitious.”
From API to Device
The move from software APIs to consumer hardware marks a strategic expansion for OpenAI. Kuo expects AI agents to shift how people interact with phones, moving from launching individual apps to completing tasks within a context-aware interface. The phone’s dual AI processors and enhanced camera ISP suggest OpenAI is building a device where the agent perceives the physical world through the camera and acts on it through the OS, rather than sitting behind a chat window.
If the 2027 timeline holds, OpenAI would enter the smartphone market directly against Apple, Samsung, and Google with a device purpose-built for agent-first interaction. The 30 million unit target for the first two years is modest by smartphone standards but significant for a first hardware entrant, and represents a bet that enough consumers will want a phone designed around an AI agent rather than an app grid.