OpenAI could move into the smartphone market sooner than expected, according to analyst Ming-Chi Kuo, who says the company’s AI-focused handset may enter mass production in the first half of 2027. Earlier reports had pointed to a 2028 timeline, but Kuo now suggests the schedule has accelerated amid rising competition in AI-powered mobile devices and the possibility of an OpenAI public offering.
The device is reportedly being developed around AI-agent functionality rather than traditional smartphone features alone. According to Kuo, MediaTek is expected to become the exclusive supplier of the phone’s system-on-chip. The handset would reportedly use a customized Dimensity 9600 processor built on TSMC’s N2P process technology, which is expected to enter production later this year.
Kuo said the smartphone will place significant emphasis on imaging and real-world visual sensing. The image signal processor is expected to feature an upgraded HDR pipeline designed to improve how the device interprets and processes visual information. The phone is also rumored to include a dual neural processing unit architecture for handling AI workloads directly on the device.
Additional reported specifications include LPDDR6 memory, UFS 5.0 storage, and security technologies such as protected kernel-based virtualization and inline hashing. These features suggest the device is being designed to support more advanced local AI processing while strengthening system-level security.
If development proceeds on schedule, Kuo estimates that cumulative shipments across 2027 and 2028 could reach 30 million units, potentially positioning the device as one of the first large-scale AI-native smartphones from a major AI company.
AI Companies Push Beyond Software Platforms
The reported smartphone project reflects how AI companies are increasingly exploring dedicated hardware to support next-generation AI experiences. Rather than relying entirely on existing mobile ecosystems, firms are looking at ways to integrate AI agents more deeply into operating systems, sensors, and on-device computing infrastructure.
For OpenAI, entering hardware could expand its ecosystem beyond software subscriptions and enterprise services. The company has already been increasing its presence across productivity tools, APIs, and personalized AI assistants, making a dedicated device a logical extension of its platform ambitions.
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