OpenAI is developing a smartphone with MediaTek and Qualcomm, marking a shift toward AI agents and direct competition with Apple's iPhone.

According to supply chain analyst Ming-Chi Kuo, OpenAI is working on a smartphone with mass production scheduled for 2028. MediaTek and Qualcomm are the chosen chip partners, and Luxshare Precision Industry is the exclusive manufacturing partner. Exact chip specifications and additional suppliers are expected to be finalized by late 2026 or the first quarter of 2027.

Kuo argues the smartphone is uniquely positioned for AI agent use because it captures a user's full real-time state—location, activity, communication, and context. He claims AI agents will shift interaction from launching individual apps to completing tasks through a continuous, context-aware interface, and that controlling both operating system and hardware is necessary to deliver comprehensive AI agent service.

This represents a reversal from OpenAI's previous publicly stated hardware strategy, which centered on non-phone form factors (smart speaker, smart glasses, smart lamp, and potentially earbuds) developed with Jony Ive's io Products, acquired by OpenAI for $6.5 billion. OpenAI Chief Global Affairs Officer Chris Lehane has said the first hardware announcement is expected in the second half of 2026, with launch around early 2027.