OpenAI could be making a phone with AI agents replacing apps
Ming-Chi Kuo says OpenAI's phone could kill apps by 2028.
According to a new note from industry analyst Ming-Chi Kuo, OpenAI is reportedly developing a smartphone in collaboration with chipmakers MediaTek and Qualcomm, along with manufacturing partner Luxshare. The device would feature a custom chip co-designed with MediaTek and Qualcomm, and instead of running traditional apps, it would rely entirely on AI agents to complete tasks. Kuo, known for his accurate Apple supply chain predictions, suggests this move would allow OpenAI to bypass the restrictions imposed by Apple and Google's app ecosystems, giving the company full control over system-level AI features.
Kuo envisions the smartphone continuously understanding user context using a mix of small on-device models and cloud-based AI. This approach would give OpenAI deeper access to user data than any app could provide, supporting its ambition to reach more consumers as ChatGPT nears a billion weekly users. The analyst expects component supplier finalization by late 2026 or early 2027, with mass production starting in 2028. OpenAI's Chief Global Affairs Officer Chris Lehane previously confirmed the company's first hardware product is on track for a 2026 launch, with earlier rumors pointing to uniquely designed earbuds.
- OpenAI is building a smartphone with MediaTek, Qualcomm, and Luxshare to replace apps with AI agents
- Mass production expected in 2028, with supplier finalization by Q1 2027
- The phone would use hybrid on-device and cloud AI models for continuous user context understanding
Why It Matters
If true, this could disrupt Apple and Google's app duopoly by replacing apps with AI agents.