OpenAI Picks MediaTek for First AI Smartphone, Targeting 2027 Launch

OpenAI Accelerates AI Smartphone Plans

OpenAI has reportedly fast-tracked the development of its first AI-focused smartphone, with mass production now targeted for the first half of 2027, well ahead of the previously projected 2028 timeline. According to a new report from analyst Ming-Chi Kuo of TF International Securities, the company has chosen MediaTek over Qualcomm as its primary chip supplier.

A Custom Chip Built for AI

The device will be powered by a customised version of MediaTek's upcoming Dimensity 9600 chip, manufactured using TSMC's next-generation N2P process node. The chip is expected to enter production in the second half of 2026. Rather than optimising for traditional smartphone performance benchmarks, the processor will prioritise AI workloads.

The image signal processor is described as the headline feature, with an enhanced HDR pipeline designed to help the phone continuously perceive and understand its surroundings. Other specifications include a dual-NPU architecture for handling different types of AI tasks, LPDDR6 memory, and UFS 5.0 storage. Security features such as pKVM-based virtualisation and inline hashing are also part of the design, aimed at protecting user data in an always-on AI environment.

Replacing Apps With AI Agents

The device represents a fundamental departure from conventional smartphone design. Rather than relying on a grid of apps, OpenAI envisions what Kuo calls an AI agent phone, a device where users delegate tasks to an AI system that understands context and completes actions in real time. Basic tasks would run locally on-device, whilst heavier AI workloads would be handled in the cloud.

Kuo wrote that only by fully controlling both the operating system and hardware can OpenAI deliver a comprehensive AI agent service.

Ambitious Targets for an Unproven Category

Kuo estimates combined shipments of around 30 million units across 2027 and 2028 if development stays on track. Luxshare is expected to serve as the exclusive partner for system design and manufacturing. The accelerated timeline may also be tied to OpenAI's potential IPO plans, according to Kuo's analysis.

The projection is ambitious for a company with no consumer hardware track record, entering a category of AI-native devices that does not yet fully exist. OpenAI has not publicly confirmed the project.