OpenAI reportedly working on smartphone built around AI agents

OpenAI was reportedly developing a smartphone built around artificial intelligence agents, marking a significant shift in how the technology company viewed hardware’s role in advancing AI capabilities, according to analyst Ming-Chi Kuo.

The proposed smartphone would replace conventional apps with AI agents capable of understanding user intent and executing tasks autonomously. Instead of navigating between multiple applications, users would interact with a unified AI system that comprehended context and completed actions in real time, including booking flights, compiling market data, managing communications, and handling other requests without requiring users to switch between different applications.

OpenAI’s approach involved vertical integration, with the company controlling both the operating system and hardware architecture. This strategy mirrored Apple’s business model and would allow OpenAI’s AI systems deeper access to device-level features than currently possible through app-based restrictions imposed by existing ecosystems controlled by Apple and Google.

The device was expected to incorporate custom processors developed in collaboration with either MediaTek or Qualcomm, while Luxshare, known for assembling iPhones, would serve as a co-design and manufacturing partner.

According to OpenAI Chief Executive Sam Altman, the device would function as a "third core device" alongside a MacBook Pro and iPhone, described as unobtrusive and context-aware. The smartphone would combine on-device AI models with cloud-based processing, optimising efficiency and enabling real-time assistance, handling smaller models locally while leveraging more sophisticated cloud models for complex tasks.

The interface design would reimagine the smartphone homescreen. Rather than displaying traditional app icons and grids, the device would feature information panels and ongoing agentic tasks, creating a dynamic experience that evolved based on user behaviour and preferences. This represented a departure from how competitors integrated AI features, which typically offered artificial intelligence as optional functionality within existing app-driven frameworks.

A key advantage of the hardware initiative was the continuous stream of data OpenAI would access about user behaviour, preferences, and usage patterns. This direct connection to device-level activity enabled improved real-time responses and contextual understanding, providing insights unavailable through standalone applications. The data collection occurred transparently as users interacted with the AI agent throughout their device usage.

Development timelines indicated the smartphone remained in early stages. Component specifications and supply chain decisions were expected to be finalised by the end of this year or first quarter of 2027. Mass production was targeted to begin in 2028, suggesting the device may reach consumers sometime thereafter.

The strategic significance lay in OpenAI’s view that controlling the entire hardware and software stack provided advantages unattainable through existing platforms. By developing proprietary hardware, OpenAI aimed to offer deeply integrated AI experiences while reducing dependence on app store ecosystems, potentially establishing AI agents as the primary interaction model rather than app-based navigation.