OpenAI is reportedly working on a next-generation smartphone designed to bring advanced “Agentic AI” capabilities directly to users, according to a new report by well-known analyst Ming-Chi Kuo. The device is expected to enter mass production in 2028 and could introduce a completely new approach to smartphone software and artificial intelligence.
The upcoming device is said to focus heavily on on-device artificial intelligence. Basic AI functions will run directly on the smartphone, while more demanding tasks will be handled through cloud computing. This hybrid approach could allow the phone to deliver faster AI responses while maintaining powerful processing capabilities.
Kuo’s report suggests that OpenAI is collaborating with major chipmakers MediaTek and Qualcomm to develop a custom processor for the smartphone. The specialized chipset would be designed specifically to support advanced AI features and continuous contextual understanding of user activity.
Meanwhile, technology manufacturer Luxshare is expected to serve as the exclusive co-design and manufacturing partner for the device. Luxshare has extensive experience in producing high-end electronics and has previously worked with major technology companies.
One of the most significant changes the OpenAI smartphone may introduce is a completely different user interface. Instead of the traditional app-based system used by most smartphones today, the device could feature a “task stream” interface. In this system, tasks and their progress would appear directly on the home screen, allowing users to interact with AI in a more natural and streamlined way.
The AI-powered interface is expected to constantly analyze user context, meaning the device may operate with always-on intelligence at the chipset level. This could allow the phone to anticipate user needs, automate tasks, and deliver more personalized experiences.
OpenAI is also expected to develop a broader agentic AI ecosystem by working with third-party developers who will create new AI-driven tools and services for the platform.
The smartphone project follows OpenAI’s acquisition of Jony Ive’s hardware startup “io” last year. At the time, OpenAI CEO Sam Altman and legendary designer Jony Ive revealed plans to create a “family of devices” powered by artificial intelligence.
Speculation about upcoming OpenAI hardware has already included products such as an AI pen, AI-powered earbuds, and even a smart speaker. If the reports are accurate, the AI-focused smartphone could become the centerpiece of OpenAI’s future hardware ecosystem.