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OpenAI is making its own phone to compete with the iPhone: report

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Why This Matters

OpenAI's move into smartphone development signals a significant shift in the tech industry, highlighting the growing importance of AI integration in everyday devices. This development could challenge established smartphone giants like Apple by introducing AI-powered features and interfaces that redefine user experience and device capabilities.

Key Takeaways

OpenAI’s hardware ambitions have been no secret, but the company has long indicated it’s not making a phone. But a new report says that’s no longer the case, and an iPhone competitor from OpenAI is now in the works.

Ming-Chi Kuo says OpenAI planning 2028 launch for its first phone

If you’ve followed OpenAI hardware rumors, you’ll know that the company is working with former Apple design chief Jony Ive on a suite of AI-infused hardware devices.

The first product expected to launch is a new HomePod-type smart speaker infused with ChatGPT and built-in camera. Smart glasses and a smart lamp are also reportedly in development.

While previous reporting has consistently said that OpenAI is not working on a phone, it seems that’s no longer the case.

Here’s analyst Ming-Chi Kuo, in a post on X:

OpenAI is working with MediaTek and Qualcomm to develop smartphone processors, with Luxshare as the exclusive system co-design and manufacturing partner. Mass production is expected in 2028…Specifications and suppliers are expected to be finalized by late 2026 or 1Q27.

Kuo also explains his belief that AI agents will shape the OpenAI smartphone, making it work and feel very different from an iPhone.

In what’s probably no coincidence, OpenAI CEO Sam Altman posted the following on X yesterday:

feels like a good time to seriously rethink how operating systems and user interfaces are designed

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