OpenAI could be making a phone with AI agents replacing apps
The phone could go in mass production in 2028, an analyst says.
There have been plenty of rumors about OpenAI’s hardware plans , which involve launching a pair of earbuds . A new note from industry analyst Ming-Chi Kuo suggests that the AI company might be working on a phone in collaboration with MediaTek, Qualcomm, and Luxshare.
Kuo, who has reported on several Apple hardware plans in the past, said that OpenAI would develop a smartphone chip with MediaTek and Qualcomm, with Luxshare acting as a co-design and manufacturing partner.
The analyst’s note also suggests that instead of apps, the smartphone could rely on AI agents to complete different tasks. Currently, Apple and Google control the app pipeline and the type of system access they get, restricting some of their functions. Kuo suggests that by creating its own smartphone and hardware stack, OpenAI would be able to use AI in all kinds of features without restrictions. With ChatGPT nearing a billion weekly users, a hardware product for daily use could also bode well for OpenAI’s ambition to reach more consumers.
This thinking is not restricted to OpenAI. Vibe coding app makers are predicting a future that doesn’t involve apps. Nothing CEO Carl Pei said at SXSW that apps will eventually go away .
Kuo believes that OpenAI’s smartphone would be designed to continuously understand users’ context. By offering the phone itself, the company could gain access to more data about users’ habits than an app on the phone could. He also said that the company will work on a mixture of small on-device models and cloud models to handle different types of requests and tasks.
The analyst said the smartphone’s specifications and its component suppliers are expected to be finalized by the year-end or by the first quarter of 2027, with mass production of the device expected to start in 2028.
Earlier this year, OpenAI Chief Global Affairs Officer Chris Lehane said that the company is on track to announce its first hardware product in the second half of 2026 . Several reports at that time indicated that the device could be uniquely designed earbuds.
OpenAI didn’t comment on the story at the time of writing.
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Ivan covers global consumer tech developments at TechCrunch. He is based out of India and has previously worked at publications including Huffington Post and The Next Web.
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Key takeaways
- OpenAI could revolutionize mobile interaction by replacing apps with AI agents.
- OpenAI's smartphone may challenge Apple and Google's dominance in the app market.
- Direct data collection from the device will allow for better personalization and efficiency in the services offered.
Editorial analysis
The possibility of OpenAI developing a smartphone that uses AI agents instead of traditional apps represents a significant shift in the mobile interaction paradigm. For the Brazilian tech sector, this could open new opportunities, especially in a market where the adoption of emerging technologies is on the rise. Brazil, with its expanding smartphone user base, could benefit from solutions that prioritize personalization and efficiency, characteristics that an AI-based device could offer.
Moreover, OpenAI's proposal to create an integrated hardware and software ecosystem could challenge established giants like Apple and Google, who dominate the app market. The ability to collect data directly from the device will allow OpenAI to better understand user behavior, potentially resulting in continuous improvements to the services offered. This move could encourage other Brazilian companies to explore similar solutions, fostering an environment of innovation.
It is crucial to observe how OpenAI plans to address privacy and security issues, especially in a context where user data is increasingly valued. Transparency regarding the use of collected data will be essential to gain consumer trust. The Brazilian market, which already faces challenges related to digital privacy, could be an interesting testing ground for OpenAI, which will need to adapt its practices to local regulations, such as the LGPD.
Finally, the forecast that mass production of the smartphone will begin in 2028 indicates a long road ahead, but also suggests that OpenAI is committed to developing a product that not only meets current needs but also anticipates future consumer demands. What is now expected is how OpenAI will communicate its innovations and how this will impact the tech market in Brazil and globally.
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