OpenAI Developing 'AI Agent' Smartphone to Rival iPhone by 2028 [Kuo]

OpenAI is reportedly preparing a push into smartphones. According to a new supply chain report, the company is developing its own device built around an AI agent, shifting away from traditional apps toward direct task execution.



TF International Securities analyst Ming-Chi Kuo shared details of the project today, projecting that mass production will begin in 2028. Final specifications and supplier agreements are expected to be locked in by late 2026 or early 2027. OpenAI is working with MediaTek and Qualcomm to co-develop processors, with Luxshare serving as the exclusive partner for system design and manufacturing.


The deal is significant for Luxshare, which has struggled to challenge Foxconn's dominant role in Apple's supply chain. It also contrasts with earlier reports that OpenAI had shifted to Foxconn for a separate AI hardware project involving former Apple design chief Jony Ive.

Kuo says OpenAI's goal is to deliver a full AI agent experience by controlling both hardware and software. He adds that smartphones remain the only devices capable of continuously capturing a user's real-time state, which is critical for contextual AI.

The interface would move away from the traditional app grid used on iOS. Instead, tasks would be handled directly through the AI. The device is expected to rely on a hybrid model, with on-device processing handling continuous monitoring and lightweight workloads, while more demanding tasks are processed in the cloud.

The hardware effort could also benefit OpenAI's chip partners. Kuo estimates that a single AI agent processor could generate revenue equivalent to 30 to 40 standard chips. If the company targets the high-end smartphone segment, the resulting upgrade cycle could become a meaningful growth driver.


OpenAI's existing user base and brand recognition could help support a bundled hardware and subscription model, alongside a new developer ecosystem.

This comes as Apple is reportedly exploring ways to manage third-party AI experiences on iOS, with plans to introduce an AI App Store in iOS 27. A dedicated OpenAI device would offer an alternative path to users outside of Apple's ecosystem.