OpenAI's new AI-focused smartphone is taking aim at Apple's iPhone

OpenAI is fast-tracking a smartphone designed to upend the app-driven model of modern mobile computing, and it's coming sooner than expected.

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According to supply chain analyst Ming-Chi Kuo, OpenAI is preparing to launch an AI-first phone that could directly challenge Apple's iPhone and Samsung's Galaxy lineup.

The device is said to leverage AI agents instead of traditional apps, offering a fundamentally new user experience for owners. Qualcomm and MediaTek are reportedly supplying the custom silicon, while Luxshare Precision Industry is handling manufacturing.

"If development stays on track, combined 2027 to 2028 shipments could reach around 30 million units," claimed Kuo

This move marks a significant pivot for OpenAI, which had previously shown no interest in entering the smartphone market. If Kuo's report is accurate, the company is now working aggressively to bring its vision of agent-based automation to a physical device.

However, this isn't the first report we have heard about OpenAI developing a physical device, as it was in May 2025 that it was reported that OpenAI CEO Sam Altman and original iPhone designer, Jony Ive, are developing an AI-powered hardware device. It's expected that 100 million units of this device will be shipped.

With the legendary Jony Ive, the renowned primary designer behind the original iPhone, the hardware is expected to be as visually striking as it is functionally transformative.

The AI phone could redefine how users interact with their devices, potentially making iOS and Android seem outdated by comparison. If OpenAI can deliver a compelling, AI-native experience, it may not only disrupt the smartphone market but also force Apple and Samsung to accelerate their own AI-driven innovations.