OpenAI is reportedly working with chipmakers MediaTek and Qualcomm to develop processors for smartphones. Popular analyst Ming-Chi Kuo recently shared a post on X (formerly known as Twitter), where he said that the project also includes Luxshare as an exclusive partner for system co-design and manufacturing. Kuo said mass production of the chips is expected to begin in 2028. Kuo said the move reflects OpenAI’s plan to build smartphones focused on AI agents. According to the post, users are shifting from using multiple apps to completing tasks directly through AI systems. Highlighting why OpenAI would build a phone, Kuo said:“1. Only by fully controlling both the operating system and hardware can OpenAI provide a comprehensive AI agent service.2. Smartphone is the only device that captures the user’s full real-time state, which is the most important input for real-time AI agent inference.3. Smartphones will remain the largest-scale device category for the foreseeable future.

OpenAI Smartphone Chip: Supply Chain and Timeline

According to Kuo, details such as specifications and suppliers are expected to be finalized by late 2026 or early 2027. The chips may target the high-end smartphone market, which sees annual shipments of around 300 to 400 million units. He said the project could also benefit companies involved in the supply chain. In particular, Luxshare may benefit from its role in the project.Kuo said OpenAI could combine hardware with subscription-based services and build a developer ecosystem around AI agents. He said OpenAI’s existing AI models and user base could support its entry into the smartphone market.