OpenAI may fast-track AI agent phone for 2027 mass production

OpenAI, the AI company that popularised generative AI technology with its ChatGPT chatbot, is now challenging Apple and Samsung. The company is reportedly working on a smartphone, but unlike Apple and Samsung, whose smartphones are built around applications developed by third parties, its smartphone will be an AI agent phone where, instead of navigating through multiple apps, users would rely on AI to complete tasks. Analyst Ming-Chi Kuo, in an X post, suggests that OpenAI is fast-tracking the development of its first AI agent smartphone, and it is expected to go into mass production as early as the first half of 2027.

OpenAI President Greg Brockman, while appearing as a witness in ongoing trial on Elon Musk’s civil lawsuit against OpenAI, recently confirmed that the company is preparing for an IPO. Kuo suggests one reason why OpenAI is fast-tracking the development of the AI agent phone is to build a strong story ahead of a possible IPO (Initial Public Offering), making the company look more attractive to investors.

Another reason, Kuo suggests, could be increasing competition in the space of AI-powered smartphones or “agent phones,” where companies are racing to offer more advanced AI features.

Chipset and hardware details

In his earlier post on X, Kuo revealed that OpenAI has partnered with both MediaTek and Qualcomm to develop the processor for the smartphone. However, it seems OpenAI has finalised MediaTek as the sole supplier of the processor for the smartphone due to better specifications.

He suggested that the processor for the smartphone will be based on Dimensity 9600 and will be built using TSMC N2P node (2nm-class semiconductor node). It is expected to go into production in the second half of 2026.

“Other key specs include a dual-NPU architecture for heterogeneous AI compute, LPDDR6 + UFS 5.0 to ease memory bottlenecks, and pKVM + inline hashing for security. If development stays on track, combined 2027–2028 shipments could reach around 30 million units,” Ming-Chi Kuo wrote in an X post.

Why OpenAI wants to build a smartphone?

Kuo, in his last post about the phone, said OpenAI is pivoting to an AI agent phone as phones have access to location, activity, communication, and context, which makes AI agents perform better on phones than on any other device. On the business model side, OpenAI could bundle subscriptions with hardware and build a new AI agent ecosystem involving developers, potentially reshaping how software is distributed and monetised on mobile devices.

Kuo predicts that if everything goes as planned, the total number of units shipped over 2027 and 2028 combined could be about 30 million.

Kuo often predicts future products well in advance of their launch and has accurately forecast several Apple products in the past. However, it should be taken with a pinch of salt. Neither OpenAI executives nor Sam Altman have publicly confirmed whether the company will launch a smartphone.