OpenAI may be accelerating plans for its first artificial intelligence-focused smartphone, with mass production now reportedly targeted for the first half of 2027, according to TF International Securities analyst Ming-Chi Kuo.
The revised timeline marks a shift from earlier projections that suggested production could begin in 2028. Kuo said the company appears to be moving faster as competition in the AI hardware segment intensifies.
The smartphone is expected to be built around AI-driven interactions and could rely on a customised processor based on MediaTek’s Dimensity 9600 platform. Earlier reports had suggested that both MediaTek and Qualcomm were involved in the project, but the latest update indicates MediaTek may emerge as the primary chip supplier.
According to Kuo, the chipset may be manufactured using TSMC’s N2P process and could enter production in the second half of 2026.
The device is expected to place significant emphasis on AI computing. Reports suggest it may feature a dual-NPU architecture designed to process multiple AI workloads simultaneously, including language and visual tasks. The phone could also include LPDDR6 memory and UFS 5.0 storage to support faster on-device processing.
Imaging capabilities are also expected to play a central role. The phone may use an upgraded image signal processor with enhanced HDR support aimed at improving real-time scene recognition and visual understanding.
Also Read: OpenAI plans AI agent-based smartphone to challenge Apple and Samsung
On the security front, the smartphone could include technologies such as pKVM and inline hashing to strengthen protection for on-device AI processing and data handling.
The device is reportedly being designed around an AI agent-based interface rather than a traditional app-centric layout. Instead of manually opening applications, users may be able to issue tasks directly to the AI system, which would execute actions in the background. Updates related to bookings, reminders and daily activities could appear through a task-oriented interface with progress indicators.
The phone is also expected to combine on-device and cloud-based AI processing. Simpler tasks may be handled locally for faster responses and improved privacy, while more demanding operations could rely on cloud infrastructure.
If development continues as planned, Kuo estimates shipments could reach around 30 million units across 2027 and 2028.
The report also suggested that OpenAI’s push into smartphones could be aimed at gaining tighter control over both hardware and software experiences for AI services. Currently, tools such as ChatGPT operate within existing mobile ecosystems like Android and iOS, where system-level limitations may restrict functionality.
Separately, OpenAI is also reportedly exploring other AI hardware products with former Apple designer Jony Ive. One of the concepts under discussion is said to be a compact, screen-less device capable of interacting through audio and video inputs.
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