OpenAI is reportedly developing an agent-first smartphone where AI agents replace traditional apps, with Qualcomm and MediaTek co-designing a custom processor and Luxshare handling exclusive manufacturing, according to analyst Ming-Chi Kuo. The device would handle lighter tasks on-device while offloading complex inference to the cloud, maintaining continuous real-time context awareness. Kuo projects 300–400 million annual shipments by 2028, a figure that would surpass Apple's iPhone volumes. Qualcomm shares surged 13% on the report. The supply chain is credible — Luxshare builds AirPods, Qualcomm powers 75% of Galaxy S26 — but OpenAI has never shipped hardware, and previous AI devices like the Humane Pin and Rabbit R1 both failed. This is OpenAI's second hardware track alongside the Jony Ive non-phone project. The 2028 timeline requires OpenAI to build manufacturing, carrier, retail, and software capabilities from scratch.
Sort: