OpenAI is developing a smartphone intended to compete directly with the iPhone, in what appears to be a significant departure from the company's previously stated hardware strategy. Here's everything we know so far.
Analyst Ming-Chi Kuo published his findings in late April following supply chain checks, describing the device as an "AI agent phone" built around a continuous, context-aware interface rather than individual apps. Kuo argued that the smartphone is the only device that captures a user's full real-time state, including location, activity, communication, and context, making it uniquely suited to AI agent inference.
He said fully controlling both the operating system and the hardware is the only way for OpenAI to deliver a comprehensive AI agent service, and that AI agents will fundamentally shift how people interact with a phone, moving the focus from launching individual apps to completing tasks through a seamless interface.
Specifications
OpenAI's phone is said to use a customized version of MediaTek's Dimensity 9600 processor, built on TSMC's N2P node in the second half of 2026. Kuo initially named both MediaTek and Qualcomm as chip partners but has since said MediaTek appears "better positioned to become the sole processor supplier."
Luxshare Precision Industry is believed to be the exclusive manufacturing partner. Separately, Kuo reported that Sunny Optical has secured component orders for two OpenAI devices, including the smartphone. This is likely for the camera module.
The device's headline known hardware specification today is its image signal processor, which includes an enhanced HDR pipeline intended to improve real-world sensing through the camera. It is also said to use two AI processors for handling different tasks simultaneously, such as vision and language processing, along with fast memory and storage and security features to isolate processes.
What About Jony Ive's Devices?
The phone represents a notable reversal in OpenAI's publicly stated strategy. The company's hardware ambitions had previously been described as centered on non-phone form factors developed with former Apple design chief Jony Ive, whose startup io Products OpenAI acquired for $6.5 billion in May 2025. Ive and CEO Sam Altman had specifically said they did not want to build a device with a screen, with Altman describing a prototype to employees as "the coolest piece of technology that the world will have ever seen."
The first product from that collaboration was delayed out of 2026 and has since been identified as a smart speaker with an integrated camera, priced between $200 and $300 and expected to launch in early 2027. Other devices reportedly in development include smart glasses, a smart lamp, and potentially earbuds, though those products are further out on the roadmap and some could be cancelled.
OpenAI has also been aggressively recruiting from Apple's hardware ranks, hiring over 40 former Apple employees. The hires include former Apple designers Evans Hankey, Tang Tan, and Scott Cannon, prompting Apple to offer its iPhone Product Design team retention bonuses of up to $400,000 in restricted stock units to counter the poaching.
Timeline
Mass production of OpenAI's smartphone was originally believed to be targeted for 2028, but Kuo has since revised that expectation to the first half of 2027. The accelerated timeline is said to reflect OpenAI's planned IPO, where a compelling hardware product could strengthen the company's investor narrative, as well as intensifying competition in the AI agent phone category. Kuo projects combined 2027 and 2028 shipments could reach around 30 million units if development stays on track.
What Does It Mean for Apple?
If the broader hardware lineup ships, OpenAI will be a direct competitor to Apple across several product categories. Apple is rumored to be developing smart glasses, AirPods with cameras, an AI pendant, and a smart home hub with enhanced Siri capabilities. On the day Kuo published his initial report, Altman posted on X that it "feels like a good time to seriously rethink how operating systems and user interfaces are designed."
Popular Stories
OpenAI is said to be fast-tracking development of its first "AI agent phone," with the company now aiming to mass produce the device as early as the first half of next year, according to industry analyst Ming-Chi Kuo. Late last month, Kuo revealed OpenAI's work on a smartphone, contradicting earlier reports that the company had no plans to enter the mobile market. Kuo said MediaTek and...
Tuesday May 5, 2026 4:53 pm PDT by Juli Clover
ChatGPT's default model has been updated to GPT-5.5 Instant, a model that brings accuracy improvements with fewer hallucinations, especially in areas like medicine, law, and finance, according to OpenAI. GPT-5.5 Instant is more capable at tasks like analyzing images, answering STEM questions, and choosing when to use web search to provide a better answer. Responses can also be personalized...
Thursday May 7, 2026 5:42 pm PDT by Juli Clover
OpenAI today launched Codex for Chrome, a Chrome extension that lets Codex work directly in the browser on Macs and PCs. With the extension, Codex can use the browser to test web apps, get context across multiple tabs, use web DevTools, and more without taking over the browser from the user. OpenAI says that after it launched Computer Use in the desktop Codex app, it saw that most common...
Instagram Engineering
Shopify Engineering