OpenAI is said to be fast-tracking development of its first “AI agent phone,” with the company now aiming to mass produce the device as early as the first half of next year, according to industry analyst Ming-Chi Kuo.
Late last month, Kuo revealed OpenAI’s work on a smartphone, contradicting earlier reports that the company had no plans to enter the mobile market. Kuo said MediaTek and Qualcomm are the chosen chip partners and Luxshare Precision Industry is the exclusive manufacturing partner, with mass production scheduled for 2028.
Reasons for Kuo’s revised 1H27 production target are now said to include OpenAI’s planned initial public offering (i.e. a compelling hardware product could strengthen its story to investors if it goes public) and intensifying competition in AI agent phones. Kuo says MediaTek appears “better positioned to become the sole processor supplier,” with the device set to use a customized version of the Dimensity 9600, which will apparently be built on TSMC’s N2P node in 2H26.
The device’s “headline spec” will allegedly be its image signal processor, featuring an enhanced HDR pipeline that improves real-world sensing – or what the AI “perceives” through the camera. The phone will also use two AI processors for handling different tasks (e.g. vision and language simultaneously), fast memory and storage, and security features to isolate processes.
“If development stays on track, combined 2027-2028 shipments could reach around 30 million units,” says Kuo, who argues that fully controlling both the operating system and the hardware is the only way for the company to deliver a comprehensive AI agent service. Kuo expects AI agents to change how people interact with a phone, shifting the focus from launching individual apps to completing tasks within a seamless context-aware interface.
Quite where this leaves Jony Ive’s non-phone AI device prototype isn’t entirely clear. Shortly after its acquisition of Ive’s startup io Products in May 2025, OpenAI engaged in something of a marketing blitz to promote Ive’s first upcoming product for the company, describing it as a “third core device” after a MacBook Pro and an iPhone. According to OpenAI CEO Sam Altman, it would be the “coolest piece of technology that the world will have ever seen.” And crucially, it wouldn’t have a screen – because phones have screens, and Ive and Altman want to wean people off those.
The original goal was to release the device later this year, but in November that roadmap got pushed back to “less than two years.” The last we heard, Ive’s first OpenAI device was revealed to be a smart speaker with a camera, set to come out in early 2027.
Other OpenAI products reportedly in development include smart glasses, a smart lamp, and potentially earbuds, but the roadmap is supposed to be further out for those. If any of these devices eventually launch, OpenAI will become a direct hardware rival against several Apple product lines – Apple is rumored to be also working on smart glasses, as well as AirPods with cameras, an AI pendant, and a smart home hub with enhanced Siri capabilities.Tags: Ming-Chi Kuo, OpenAIThis article, “OpenAI Fast-Tracking AI Phone for 2027 Launch, Says Kuo” first appeared on MacRumors.comDiscuss this article in our forums
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Author: Tim Hardwick