OpenAI is reportedly exploring a move into smartphones designed around artificial intelligence agents, potentially reshaping how users interact with mobile devices.
AI Agent Smartphone Concept Emerges
On Sunday, Analyst Ming-Chi Kuo posted on X, OpenAI is reportedly working with chipmakers MediaTek and Qualcomm Inc. (NASDAQ:QCOM), along with manufacturing partner Luxshare, on a potential "AI agent" smartphone concept expected for mass production as early as 2028.
The concept centers on replacing app-based interactions with a task-driven AI assistant that executes user requests directly.
"Users are not trying to use a pile of apps. They are trying to get tasks done and fulfill needs through the phone," the report stated, framing the device as a shift in how smartphones are used.
It also noted, "Only by fully controlling both the operating system and hardware can OpenAI deliver a comprehensive AI agent service," highlighting the importance of vertical integration for real-time AI performance.
The proposed system would combine on-device processing for quick context awareness with cloud-based AI for more complex computing tasks.
OpenAI Advances Hardware Shift
Earlier, OpenAI reportedly moved its AI hardware project to Foxconn Technology Group, shifting production away from Luxshare and mainland China due to supply-chain concerns, with assembly planned in Vietnam or the U.S.
The "Gumdrop" device, still in development, is expected to launch around 2026–2027 and strengthen Foxconn's role in OpenAI's hardware push.
Separately, OpenAI planned to integrate its Sora AI video tool into ChatGPT while keeping it as a standalone app.
The move aimed to boost ChatGPT usage and compete with Meta and Google in the growing AI video space, though it could increase computing costs.
Qualcomm Rises On OpenAI Chip Reports
Qualcomm closed at $148.85 on Friday, rising 11.12%, and extended its gains in Monday pre-market trading with another 10.89% jump.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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