Will smartphones become smart enough to think for users? OpenAI’s reported AI-first handset, backed by chip giants, signals a shift towards agent-driven, app-free mobile experiences by 2028.
OpenAI is reportedly developing an AI-centric smartphone in collaboration with Qualcomm and MediaTek, with manufacturing expected to be handled by China-based Luxshare. The device could enter mass production by 2028, with hardware specifications likely to be finalised by early 2027.
According to several reports, the proposed smartphone would be built around AI agents, potentially shifting user interaction away from traditional mobile applications. The design is expected to rely on a combination of on-device processing and cloud-based AI, enabling real-time inference and lower latency performance.
OpenAI may adopt a hybrid revenue model combining hardware sales with subscription services, and develop an ecosystem centred on AI agents, according to a report by EE Times. Annual shipments could range between 300 million and 400 million units, according to his projections.
The development marks a shift in OpenAI’s hardware strategy. Following its acquisition of Jony Ive’s io Products in 2025, the company initially focused on creating a new category of AI devices intended to complement smartphones and laptops rather than replace them. These concepts included wearable or screenless devices optimised for local AI tasks.
Recent statements from OpenAI chief Sam Altman, however, suggest a reassessment of the smartphone’s long-term relevance. Analysts now view smartphones as the primary platform for capturing real-time user data, making them central to advanced AI deployment.
The initiative could intensify competition with established players such as Apple and Samsung, which together dominate a significant share of the global smartphone market. It also signals a broader industry shift towards integrating AI more deeply into core device architecture, potentially redefining the next phase of smartphone design and functionality.
