Possible reasons for the accelerated timeline include an anticipated IPO and growing competition in the AI smartphone space. MediaTek is currently in a stronger position as the sole chip supplier. Combined shipments for 2027 and 2028 could reach around 30 million devices.

OpenAI appears to be fast-tracking its first AI agent phone, with mass production targeted as early as 1H27
OpenAI appears to be fast-tracking its first AI agent phone, with mass production targeted as early as 1H27. Х

With the smartphone, OpenAI aims to offer a fully integrated AI agent that handles tasks on behalf of users — rather than routing them through individual apps. Only by controlling its own hardware and operating system can OpenAI deliver this kind of service at scale. Key advantages include a strong brand, accumulated user data, and leading AI models. The business model could combine hardware sales with subscription services.

Conceptual visualization of the OpenAI agent software by Ming-Chi Kuo
Conceptual visualization of the OpenAI agent software by Ming-Chi Kuo

The choice of smartphone as a form factor is also something of an admission that the moment for more experimental AI hardware has not yet arrived. Smartphones remain by far the dominant hardware category. Google, moreover, holds an enormous head start through its Android dominance and is also actively developing AI-powered features for its own devices.