OpenAI is reportedly moving faster on plans to develop an AI agent smartphone that could enter mass production by 2027, marking a potential expansion from software into consumer hardware.
AI Smartphone Push Gains Momentum
Analyst Ming-Chi Kuo said in a post on X that OpenAI "may be accelerating the development of its first AI agent smartphone," with mass production targeted for the first half of 2027.
He added that the move could be driven by "a favorable year-end IPO narrative" and rising competition in AI-focused devices.
Kuo said MediaTek is "more likely to secure the exclusive processor order," with the device expected to use a customized Dimensity 9600 chip manufactured by TSMC using its advanced N2P process.
He also pointed to expected hardware upgrades, including a dual NPU design for AI computing, faster LPDDR6 memory, UFS 5.0 storage and enhanced security features such as pKVM and inline hashing.
"If development proceeds smoothly, shipments are projected to total approximately 30 million units in 2027 and 2028 combined," Kuo wrote.
OpenAI AI Smartphone Aims To Replace Apps
Last week, OpenAI was reportedly exploring an AI smartphone concept aimed at replacing app-based usage with a task-driven AI assistant.
Kuo said that OpenAI was working with MediaTek, Qualcomm Inc.
The report stated, "Users are not trying to use a pile of apps. They are trying to get tasks done and fulfill needs through the phone," highlighting the shift in device usage.
It also noted that full control of hardware and software was seen as key to delivering a complete AI agent experience.
Earlier, OpenAI was reportedly shifting its first AI hardware project to Foxconn Technology Group, moving production from Luxshare due to supply-chain concerns.
The "Gumdrop" device was expected to be assembled in Vietnam or the U.S. and could launch in 2026 or 2027.
Separately, OpenAI planned to integrate its Sora AI video tool into ChatGPT while keeping it available as a standalone app, as it positioned itself to compete with Meta Platforms
The move was seen as part of a broader push into video AI, though it could increase chatbot usage and costs.
