The idea of OpenAI manufacturing a smartphone sounded until recently like an unlikely scenario. The company and its new partner Jony Ive, the man who designed some of Apple's most iconic products, repeatedly spoke about a new category of devices based on artificial intelligence, one that would not be just another classic smartphone. However, already in recent months, reports began to surface regarding an internal smartphone project, and now additional details are emerging that paint a clearer picture of what OpenAI might be preparing behind the scenes.
According to analyst Ming-Chi Kuo, who bases his assessments on supply chain checks, OpenAI is developing a smartphone defined as an "AI Agent phone". The central idea behind the device is a transition from a user experience based on separate applications to a continuous, context-aware interface capable of understanding the user's location, their activity, their communication, and the situation they are in in real time.
According to Kuo, a smartphone is the only device that accompanies the user at almost every moment and therefore provides the broadest amount of information for artificial intelligence systems. He assesses that full control over both hardware and software is a necessary condition to provide a truly comprehensive AI experience.
On the technical side, reports indicate that the device will be based on a customized version of MediaTek's Dimensity 9600 processor, manufactured using TSMC's N2P process during the second half of 2026. Initially, both MediaTek and Qualcomm were mentioned as potential partners, but the current assessment is that MediaTek may become the sole supplier of the processor.
One of the prominent features revealed is an image processor with an enhanced HDR mechanism, designed to enable a better understanding of the environment through the camera. Additionally, the device is expected to include two separate AI processors that will handle different tasks simultaneously – such as visual processing and language processing – alongside fast memory, advanced storage, and security mechanisms for process separation.
The reports are particularly interesting because they seemingly contradict previous statements by OpenAI and Jony Ive. Following the acquisition of Ive's company, io Products, in May 2025 for 6.5 billion dollars, the two emphasized that they were not interested in building another device with a screen. Since then, it has been reported that the first product from the partnership will be a smart speaker with a built-in camera, the price of which is expected to range between 200 and 300 dollars and reach the market in early 2027. Other products reportedly in development stages include smart glasses, a smart lamp, and perhaps also headphones.
Concurrently, OpenAI continues to recruit senior hardware personnel from Apple. According to reports, more than 40 former employees of the company have joined its ranks, including Evans Hankey, Tang Tan, and Scott Cannon. The move even led Apple to offer significant bonuses to certain employees in order to prevent further departures.
The schedule has also changed. While it was previously estimated that mass production of the phone would only begin in 2028, Kuo now believes that the target has been moved forward to the first half of 2027. The possible reasons for this are the increasing competition in the AI phone sector and OpenAI's need to present a compelling hardware vision ahead of a future IPO. If the plans materialize, Kuo estimates that shipments of the device in 2027 and 2028 combined could reach about 30 million units.