OpenAI could be making a phone with AI agents replacing apps

Speculation is swirling around OpenAI's potential entry into the hardware market, as industry analyst Ming-Chi Kuo hints at an ambitious project: a smartphone that could redefine how we interact with technology. This device may be developed in partnership with MediaTek, Qualcomm, and Luxshare, with Kuo revealing that OpenAI plans to create a custom chip for the smartphone. What sets this device apart is its reliance on AI agents to manage tasks rather than traditional apps. Currently, major players like Apple and Google dominate the app landscape, which can limit how applications access system features. By developing its own smartphone and accompanying hardware, OpenAI could harness AI across various functionalities without these constraints. With ChatGPT rapidly approaching a billion weekly users, the introduction of a daily-use hardware product could significantly expand OpenAI’s consumer reach. This vision aligns with a broader trend, as some industry leaders, such as Vibe's CEO Carl Pei, predict a future where conventional apps may fade away. Kuo further elaborates that OpenAI's smartphone is designed to constantly adapt to users' contexts, providing a deeper understanding of user behavior than what traditional apps can offer. The device will utilize a blend of compact on-device models and cloud-based solutions to efficiently handle diverse tasks. Looking ahead, Kuo anticipates that specifications and component partnerships for the smartphone will be finalized by the end of this year or early 2027, with mass production expected to kick off in 2028. Earlier this year, Chris Lehane, OpenAI’s Chief Global Affairs Officer, indicated that the company aims to unveil its inaugural hardware product in the latter half of 2026, which may initially take the form of uniquely designed earbuds. As of now, OpenAI has not provided any official comment on these developments.