OpenAI is developing a smartphone aimed at competing directly with the iPhone, in what appears to be a major departure from the company’s previously stated hardware strategy. Here’s everything we know so far.
Analyst Ming-Chi Kuo published his findings in late April following a test of the acquisition, describing the device as an “AI agent phone” built on a continuous, context-aware platform rather than individual applications. Kuo argued that the smartphone is the only device that captures the full real-time state of the user, including location, activity, communication, and context, making it uniquely suited to AI agent understanding.
He said that full control of both the application and the hardware is the only way for OpenAI to deliver a complete AI agent service, and that AI agents will fundamentally change the way people interact with the phone, shifting the focus from starting individual applications to completing tasks through a seamless interface.
Details
The OpenAI phone is said to use a customized version of MediaTek’s Dimensity 9600 processor, built on TSMC’s N2P platform in the second half of 2026. Kuo initially named both MediaTek and Qualcomm as chip partners but has since said MediaTek appears to be “better positioned to be a single processor supplier.”
Luxshare Precision Industry is believed to be the exclusive manufacturing partner. Separately, Kuo reported that Sunny Optical has secured part orders for two OpenAI devices, including a smartphone. This can happen in the camera module.
A well-known hardware device topic today is the image signal processor, which includes an advanced HDR pipeline aimed at improving the real-world experience with the camera. It is also said to use two AI processors to handle different tasks at the same time, such as vision and language processing, as well as fast memory and storage and security features to separate processes.
What About Jony Ive’s Devices?
The phone represents a significant shift in OpenAI’s publicly stated strategy. The company’s hardware ambitions have previously been described as focusing on non-phone devices developed with former Apple chief design officer Jony Ive, who started Io Products OpenAI for $6.5 billion in May 2025. Ive and CEO Sam Altman have said outright that they don’t want to build a device with a screen, with Altman describing the prototype for workers worldwide as “the most labor-intensive work ever seen.”
The first product of that collaboration was delayed from 2026 and has been identified as a smart speaker with an integrated camera, priced between $200 and $300 and expected to be launched in early 2027. Other devices reportedly in development include smart glasses, a smart light, and possible earbuds, though those products are off the roadmap and some may be canceled.
OpenAI also recruited heavily from Apple’s hardware ranks, hiring more than 40 former Apple employees. These hires include former Apple designers Evans Hankey, Tang Tan, and Scott Cannon, prompting Apple to give its iPhone Product Design team final bonuses of up to $400,000 in anti-poaching restricted stock units.
A timeline
Large-scale production of the OpenAI smartphone was initially believed to be targeted for 2028, but Kuo has revised that expectation to the first half of 2027. The accelerated timeline is said to reflect OpenAI’s planned IPO, where a compelling hardware product could strengthen the company’s investor narrative, as well as strengthen the phone’s competition in the AI segment. Kuo’s combined 2027 and 2028 projects could reach an estimated 30 million units if development stays on track.
What Does It Mean About Apple?
If the broad ships of the hardware system, OpenAI will directly compete with Apple in all several product categories. Apple is rumored to be developing smart glasses, AirPods with cameras, an AI pendant, and a smart home hub with enhanced Siri capabilities. The day Kuo published his first report, Altman tweeted to X that “it feels like a good time to rethink how operating systems and interfaces are built.”