OpenAI May Develop AI-Focused Smartphone Chips With Qualcomm and MediaTek

Renowned analyst Ming-Chi Kuo recently shared on X that OpenAI is partnering with semiconductor firms MediaTek and Qualcomm to develop smartphone processors, with Luxshare acting as the exclusive system co-design and manufacturing partner. According to Kuo, mass production is slated to begin in 2028. Qualcomm, fresh off the release of its Snapdragon X2 Elite laptop processor, saw its stock rise earlier today following reports of the partnership with OpenAI.

One might wonder why OpenAI, coming off a banner week of announcements, including the release of Images 2.0, wants to enter the smartphone business. As Kuo explained, “Only by fully controlling both the operating system and hardware can OpenAI deliver comprehensive AI agent service.” He added, “The smartphone is really the only device that captures the user’s full real-time state, which is the most important input for real-time AI agent inference.”

One ChatGPT user in South Carolina is seen in the video below using the software on a smartphone to help run their fourth-generation family farm. 
OpenAI CEO Sam Altman remarked last year that the devices the company is designing with its partners will differ significantly from current smartphones. He hinted that they will “know everything you’ve ever thought about, read, [and] said,” comparing the experience to walking through Times Square.

Altman elaborated, “You can go for a vibe that is not like walking through Times Square and getting bumped into and having all this stuff compete for your attention. But, like, sitting in the most beautiful cabin by a lake and in the mountains and sort of just enjoying the peace and calm.”

Another factor driving OpenAI’s entry into the competitive smartphone market, according to Kuo, is the maturity of the current hardware landscape, which allows the company to leverage established supply chains to develop its device. When combined with OpenAI’s AI agent ecosystem and potential subscription bundles, the company's strategy becomes more coherent.

Regardless of what this device eventually becomes, there will surely be significant buzz surrounding it. Keep an eye on HotHardware for future announcements regarding OpenAI.