Rumor has it OpenAI is building an agentic AI smartphone

OpenAI is apparently not content with just running the most talked-about AI chatbot on the planet. The company now wants to be in your pocket, too.

Prominent Apple analyst Ming-Chi Kuo published findings this weekend revealing that OpenAI is developing a smartphone built around AI agents rather than traditional apps. According to Kuo, the device is being built in partnership with MediaTek and Qualcomm on the processor side, with Luxshare serving as the exclusive manufacturing partner.

Mass production isn't expected until 2028, with specs and suppliers likely locked in by late 2026 or early 2027.

The core pitch, per Kuo, is a fundamental rethinking of the way our phones work.

Instead of juggling a pile of apps, users would simply tell their phone what they want to do, and the AI agent would accomplish that task. OpenAI is reportedly building an agentic AI operating system from the ground up around that premise.

Kuo notes that OpenAI has several advantages in this space, including an established consumer brand, years of accumulated user data, and frontier AI models. The phone would reportedly combine on-device AI for continuous context awareness with cloud AI handling heavier computational tasks.

This is a separate venture from OpenAI's previously announced hardware ambitions. The company has been working alongside former Apple Chief Design Officer Jony Ive on a small, screenless AI companion device.

As Mashable reported last October, that project has hit significant development headwinds, including software architecture challenges, infrastructure hurdles, and the thorny question of how to build an "always-on" AI personality that feels helpful rather than creepy.

One source close to the project told the Financial Times that OpenAI is already stretched thin just keeping ChatGPT running, which reportedly costs between $3 and $4 billion annually. A release that was once eyed for 2026 could slip to 2027.

Whether OpenAI can actually deliver on any of its hardware ambitions is the real question. Several "revolutionary" AI devices have already gone to the tech graveyard. The Rabbit R1 promised similar things. So did the Humane Pin, which was discontinued less than a year after launch. OpenAI is betting that it's not like the others.

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Disclosure: Ziff Davis, Mashable’s parent company, in April 2025 filed a lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.