Many have thrown around the idea that AI will replace the smartphone, but it seems even OpenAI disagrees as the company is working on its own smartphone that focuses on the use of AI agents.
Analyst Ming-Chi Kuo reports that OpenAI is developing its own smartphone. The new device would be powered by custom hardware from either MediaTek or Qualcomm, with production through Luxshare, a company which also assembles iPhones.
The new device, Kuo says, would “deliver a comprehensive AI agent service.”
A concept shared by Kuo shows a device that replaces its homescreen with a panel of information and ongoing agentic AI tasks, such as booking flights, compiling market data, and more. OpenAI’s device likely won’t look exactly like this, but Kuo believes this is how AI agents will “redefine” the smartphone.

The actual device apparently won’t be finalized until late this year or even early 2027, with mass production not happening until 2028.
It’s hard to imagine this device is based on anything other than Android for the underlying architecture, but there’s no mention of that in the report.
More on OpenAI:
- OpenAI can use Google and more for cloud providers under updated Microsoft deal
- OpenAI rolls out GPT-5.5 with improved contextual understanding, Plus and up
- OpenAI shutting down Sora video generation app
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