OpenAI Said to Team With Qualcomm, MediaTek on Smartphone Aimed at AI Agents

OpenAI is working with Taiwan's MediaTek Inc. and Qualcomm Inc. to develop a smartphone processor, according to TF International Securities analyst Ming-Chi Kuo. China's Luxshare is set to be the device's exclusive design and manufacturing partner, with mass production targeted for 2028. The move would position OpenAI to challenge Apple's iPhone and Samsung Electronics Co.'s Galaxy lineup.

Qualcomm shares jumped 14% in premarket trading in New York after the report, while Apple shares fell 1.7%.

Kuo posted the details on X on April 27. He wrote that recent industry checks confirmed OpenAI is collaborating with Qualcomm and MediaTek on smartphone processor development.

The device's defining feature would be its use as an AI agent, according to Kuo. Production would begin in 2028, while "specifications and suppliers will likely be finalized by late 2026 or the first quarter of 2027," he wrote. Kuo is widely known for accurate predictions about Apple.

OpenAI acquired io Products, the startup founded by former Apple design chief Jony Ive, for $6.5 billion in May last year and has put Ive in charge of the related business. Since bringing in the designer behind the iPhone, the company has widely been expected to be considering a push into hardware, including smartphones.

Kuo said OpenAI wants to build a phone because full control of both the operating system and hardware would let it offer a comprehensive AI agent service. He also cited smartphones' ability to capture users' real-time context, which is critical for training real-time AI agents, and said handsets are likely to remain the most scalable device for now.

Some media outlets have raised the possibility that the planned device may not be a smartphone. The Wall Street Journal reported last year that Sam Altman told employees the product would be a "third core device" to be used alongside phones and laptops.

Reuters has reported that OpenAI is pulling back from side projects as losses widen and is focusing on developing coding tools for enterprise customers.

If OpenAI releases a smartphone, it would go head-to-head with Apple and Samsung, which together account for about 40% of the global smartphone market.

Qualcomm shares are down 13% this year. That makes them one of the weakest performers in the Philadelphia Semiconductor Index, which has risen nearly 50% this year after an 18-session winning streak.

Qualcomm is scheduled to report fiscal second-quarter earnings after the market closes on April 29.

Kim Jung-a, guest reporter, Hankyung.com, kja@hankyung.com