OpenAI's smartphone targets 2027 launch with AI agent design
OpenAI is developing a smartphone expected to ship in the first half of 2027, according to supply chain analysis from analyst Ming-Chi Kuo. The company has accelerated its timeline from an original 2028 target, with projected shipments of around 30 million units across 2027 and 2028.
The device differs fundamentally from existing phones. Rather than running discrete applications, it will feature a persistent user interface built for AI agents - software systems that reason across location, activity, communications, and real-time context simultaneously. This requires hardware and software integration that only a vertically controlled platform can deliver.
Hardware and manufacturing
The phone will use a modified MediaTek Dimensity 9600 chip built on TSMC's N2P process, with production expected to begin in the second half of 2026. Kuo initially mentioned both MediaTek and Qualcomm as potential suppliers before identifying MediaTek as the likely sole vendor.
Luxshare Precision Industry will manufacture the devices. The hardware includes two dedicated AI processors for parallel vision and language tasks, a camera from Sunny Optical, and an advanced HDR system in the image signal processor for improved environmental perception.
Design team and prior commitments
OpenAI acquired design firm IO Products, founded by Jony Ive, for $6.5 billion in May 2025. Both Ive and OpenAI CEO Sam Altman stated at the time that they had no plans to develop a device with a display screen.
The first product from this collaboration will be a smart speaker with a camera, priced between $200 and $300, arriving in the first quarter of 2027. The team has recruited 40 former Apple staff members, including designers Evans Hankey, Tang Tan, and Scott Cannon. Apple responded by offering retention bonuses up to $400,000 in restricted stock to its iPhone design team.
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