OpenAI could make a phone with AI agents replacing apps

There have been a lot of rumors about OpenAI’s hardware plans, which include launching a pair of earbuds. A new note from industry analyst Ming-Chi Kuo suggests that the AI ​​company may be working on a phone in collaboration with MediaTek, Qualcomm, and Luxshare.

Kuo, who has reported on several Apple hardware plans in the past, said OpenAI will develop a smartphone chip with MediaTek and Qualcomm, with Luxshare serving as a co-design and manufacturing partner.

The analyst note also notes that instead of apps, the smartphone could rely on AI agents to complete various tasks. Currently, Apple and Google control the flow of apps and the type of system access they get, which limits some of their functionality. Kuo suggests that by creating its own smartphone and hardware portfolio, OpenAI will be able to use AI for all kinds of features without restrictions. With ChatGPT approaching 1 billion weekly users, a hardware product for everyday use could also bode well for OpenAI’s ambition to reach more consumers.

This thinking is not limited to OpenAI. Vibe coding app makers foresee a future that doesn’t include apps. CEO Carl Pei said nothing at SXSW that the apps would eventually disappear.

Kuo believes that OpenAI’s smartphone will be designed to continuously understand users’ context. By offering the phone itself, the company can access more data about users’ habits than an app on the phone can. He also said that the company will work on a mix of on-device microforms and cloud forms to handle different types of requests and tasks.

The analyst said that the specifications for the smartphone and its component suppliers are expected to be finalized by the end of the year or by the first quarter of 2027, and mass production of the device is expected to begin in 2028.

Earlier this year, Chris Lehane, CEO of Global Affairs at OpenAI, said that the company was on track to announce its first hardware product in the second half of 2026. Several reports at the time indicated that the device could be uniquely designed earbuds.

OpenAI has not commented on the story at the time of writing.