OpenAI is working with Qualcomm and MediaTek to develop custom processors for an AI-focused smartphone, with mass production targeted for 2028. TF International Securities analyst Ming-Chi Kuo reported the partnership on X, citing Luxshare as the exclusive system co-design and manufacturing partner.
The device would replace the traditional app-based smartphone experience with agent-driven task execution, according to Benzinga. Instead of opening individual apps, users would delegate tasks to AI agents running on the device.
What We Know About the Chips
Kuo identified three key design priorities for the custom processors: power consumption, memory hierarchy management, and basic small-model execution on-device. More demanding tasks would fall back to cloud AI, a hybrid architecture similar to how current smartphones split workloads, according to Android Authority.
Finalized chip specifications and confirmed suppliers are expected by late 2026 or Q1 2027, per Kuo. The project is still in early stages, meaning the 2028 mass production target could shift.
The choice of both Qualcomm and MediaTek is notable. Gadgets 360 noted that involving two competing chip designers gives OpenAI leverage in negotiating price and performance tradeoffs, while Luxshare’s role as exclusive manufacturing partner mirrors the company’s existing position as a major Foxconn competitor in consumer electronics assembly.
The App-Free Bet
The device’s design philosophy centers on replacing apps with agents. Rather than a home screen full of icons, the phone would present a task-oriented interface where autonomous agents handle research, booking, communication, and other actions without requiring users to navigate individual applications, according to Benzinga.
Kuo also indicated that the phone would need to “continuously” understand user context, suggesting extensive always-on AI processing. Android Authority noted this is architecturally similar to Qualcomm’s Sensing Hub, which already supports low-power, always-on inference on current Snapdragon chips.
OpenAI’s Hardware Trajectory
This is not OpenAI’s first hardware play. The company signed a deal with Broadcom last year to develop custom AI chips for its data center infrastructure. A consumer device would extend that strategy from backend compute to the user’s pocket.
The smartphone project also signals OpenAI’s broader shift toward vertical integration. The company has rapidly expanded beyond API services into enterprise products (Workspace Agents, Codex), and a phone would give OpenAI direct control over the entire stack: model, operating system, and hardware. Sherwood News reported that Qualcomm shares surged on the news.
What Remains Unclear
Several key questions are unanswered. The operating system choice (Android-based, custom, or something else) has not been disclosed. Pricing, target market (consumer vs. enterprise), and whether the device would support third-party apps alongside agent functionality are all unconfirmed. The 2028 timeline also leaves significant room for the project to evolve or be shelved, as Gadgets 360 noted the project remains in “infancy.”