OpenAI May Build AI-First Smartphone to Replace Apps

OpenAI is reportedly shifting its hardware strategy beyond wearables, exploring the development of a proprietary smartphone. According to a recent industry note from analyst Ming-Chi Kuo, the company is eyeing a collaborative project involving major tech players MediaTek, Qualcomm, and Luxshare to build a device centered on AI agents rather than traditional applications.

Kuo, known for his insights into Apple’s supply chain, outlined a roadmap where OpenAI would engineer a smartphone chip alongside MediaTek and Qualcomm. Luxshare is tipped to serve as the primary partner for co-design and manufacturing duties.

Replacing Apps with AI Agents

The core philosophy behind this potential device is to move away from the current “app-centric” mobile experience. By controlling the entire hardware stack, OpenAI could bypass the restrictive pipelines imposed by Google and Apple, allowing its AI agents to integrate deeply into the system and perform tasks without the functional limitations currently faced by third-party software.

This vision aligns with broader industry sentiment. Figures like Nothing CEO Carl Pei have previously predicted the eventual decline of the app ecosystem, while proponents of “vibe coding” also anticipate a software landscape driven by intent rather than individual applications. For OpenAI, which is nearing one billion weekly users for ChatGPT, a dedicated hardware device offers a direct path to capture more consumer data and behavioral patterns.

Technical Integration and Timeline

Kuo suggests that the device would rely on a hybrid architecture, balancing small on-device models for immediate responses with cloud-based processing for more complex requests. This setup is designed to ensure the phone maintains a continuous, contextual understanding of the user.

The development timeline currently points to the following milestones:

• Component Finalization: Expected by the end of 2025 or the first quarter of 2027.
• Mass Production: Targeted to begin in 2028.

While rumors have long persisted regarding OpenAI’s hardware ambitions—specifically regarding earbuds—the company has remained tight-lipped. Earlier this year, Chris Lehane, OpenAI’s Chief Global Affairs Officer, stated that the firm is on track to reveal its first hardware product in the second half of 2026. Whether that announcement focuses on audio wearables or this newly rumored smartphone remains to be seen, as OpenAI did not provide comment for this report.