OpenAI Said to Develop AI Agent Smartphone With MediaTek, Qualcomm and Luxshare, Ming-Chi Kuo Says

OpenAI is working with MediaTek, Qualcomm and Luxshare on a new generation of AI-focused smartphones that could reshape the mobile industry, according to Hong Kong-based TF International Securities analyst Ming-Chi Kuo.

Qualcomm shares jumped 9% in overnight trading.

Kuo said MediaTek and Qualcomm are collaborating on smartphone processors, while Luxshare has been selected as the exclusive system co-design and manufacturing partner. Mass production is expected to begin in 2028.

The project is centered on the concept of an “AI agent phone,” in which smartphones evolve from app-based platforms into task-oriented assistants capable of understanding user intent and completing requests directly. Kuo said such a shift would fundamentally change how consumers interact with mobile devices.

He outlined several reasons why OpenAI may pursue its own smartphone strategy. Full control over both hardware and operating systems would allow the company to deliver a more integrated AI agent experience. Smartphones also remain the only devices that continuously capture a user’s real-time context, making them a critical source of data for AI inference. In addition, handsets are expected to remain the world’s largest consumer electronics category for the foreseeable future.

Kuo said future AI phones will likely rely on a hybrid architecture combining on-device and cloud-based artificial intelligence. Processors would need to manage power efficiency, memory allocation and lightweight AI workloads locally, while more complex tasks would be handled in the cloud.

He added that OpenAI’s advantages include strong consumer brand recognition, a large installed user base and leadership in AI models. Because smartphone hardware is already mature, the company could leverage established supply chains to accelerate development. OpenAI may also combine hardware sales with subscription services to build a broader AI ecosystem.

For suppliers, Kuo said MediaTek and Qualcomm could benefit if AI smartphones trigger a new replacement cycle. He expects product specifications and supplier decisions to be finalized by late 2026 or the first quarter of 2027.

If the initial rollout targets the premium smartphone market, which ships roughly 300 million to 400 million units annually worldwide, the category could become an important new growth driver for chipmakers and component suppliers.

Kuo also said the project could be particularly meaningful for Luxshare. While it may be difficult for the company to surpass Hon Hai Precision Industry in Apple’s existing assembly supply chain, an early role in OpenAI’s smartphone program could position Luxshare as a major beneficiary of the next generation of mobile devices.