According to Kuo, the project is already taking shape behind the scenes. Chipmakers MediaTek and Qualcomm are reportedly involved, while manufacturing is expected to be handled exclusively by Luxshare Precision Industry. Mass production is tentatively scheduled for 2028, with key technical details likely to be finalized between late 2026 and early 2027.
Why Smartphones Still Matter for AI
Kuo highlights that smartphones remain central to the future of AI because they continuously capture real-time user data - including location, behavior, communication, and context. This makes them uniquely suited for powering advanced AI agents.
Rather than relying on individual apps, these AI-driven systems could shift how users interact with devices entirely. The focus may move toward seamless, task-based experiences, where actions are handled through intelligent, context-aware interfaces instead of manual app navigation.
Control Over Hardware and Software
To fully realize this vision, Kuo suggests that controlling both the operating system and the hardware will be essential. This level of integration could allow OpenAI to deliver a more cohesive AI ecosystem, potentially supported by a subscription-based model that encourages developers to build services around AI agents.
Supply Chain and Industry Impact
The partnership could also benefit Luxshare, a company that has been working to diversify beyond its reliance on Apple Inc.’s supply chain. Early involvement in a new category of AI-focused smartphones could position it strongly in the next wave of hardware innovation.
A Change From Previous Hardware Plans
This development contrasts with earlier reports about OpenAI’s hardware direction. The company has previously been linked to projects outside the traditional smartphone space, particularly through its collaboration with Jony Ive, the former Apple design chief. His startup, io Products, was acquired by OpenAI in a $6.5 billion deal.
Those efforts are believed to include devices like a smart speaker, smart glasses, a connected lamp, and possibly wireless earbuds. The first product announcement is expected in the second half of 2026, with a potential launch in early 2027.
Rethinking the Smartphone Experience
On the same day Kuo shared his analysis, OpenAI CEO Sam Altman hinted at broader ambitions, suggesting it may be time to rethink how operating systems and user interfaces are designed.
If OpenAI moves forward with a smartphone, it would place the company in direct competition with established players like Apple - potentially reshaping how people interact with mobile technology in the age of AI.
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