OpenAI is building its own smartphone around AI agents instead of traditional apps, with mass production potentially starting in the first half of 2027.

OpenAI is partnering with chipmakers MediaTek and Qualcomm, plus manufacturer Luxshare, to build an AI smartphone. Mass production was originally planned for 2028 but could start as early as the first half of 2027, according to analyst Ming-Chi Kuo. Combined shipments for 2027 and 2028 could hit around 30 million devices.

Instead of an app icon grid, the smartphone will run AI agent software that handles tasks for users directly, rather than routing them through separate apps. OpenAI plans to generate revenue from a mix of subscriptions and hardware sales.

The shift to smartphones reflects that more experimental AI hardware form factors are not yet ready for widespread adoption. Major remaining challenges are security and reliability, and there is no clear killer use case beyond optional tasks like booking a restaurant.