OpenAI is reportedly developing its own smartphone designed to compete directly with Apple's iPhone, according to a report from analyst Ming-Chi Kuo published Sunday. The device, which could enter mass production as early as 2028, is said to feature AI agents that replace conventional apps — a fundamental rethinking of how users interact with a phone.
OpenAI, the artificial intelligence company behind ChatGPT, is working on a smartphone intended to challenge Apple's dominance in the mobile market, according to a report from prominent supply chain analyst Ming-Chi Kuo.
The development marks a significant shift in OpenAI's stated hardware strategy. The company had previously signalled it was not building a phone, with its hardware ambitions centred on other form factors developed in collaboration with designer Jony Ive. Earlier reports had suggested OpenAI's first Ive-designed device would resemble a smart home speaker, similar in concept to Apple's HomePod.
A Different Kind of Phone
The most striking aspect of the reported device is its architectural departure from existing smartphones. Rather than running conventional apps, the phone would reportedly rely on AI agents to handle tasks — a paradigm in which an AI system acts autonomously on a user's behalf, booking appointments, composing messages, or browsing the web without requiring the user to open separate applications.
This concept aligns with OpenAI's broader push into agentic AI, a field in which AI models are given tools and memory to complete multi-step tasks with minimal human intervention. If realised, such a device would represent one of the most significant attempts to redesign the smartphone interface since Apple introduced the touchscreen model in 2007.
Timeline and Production
Kuo, whose supply chain sources have historically provided reliable advance information about Apple and broader consumer electronics production, indicated the OpenAI device could begin mass production in 2028. That timeline suggests the product remains in relatively early development, with considerable engineering and software work still ahead.
OpenAI has not publicly confirmed the project. The company declined requests for comment at the time of publication.
A Crowded and Contested Space
OpenAI would be entering a smartphone market long dominated by Apple's iOS and Google's Android platforms. Previous attempts by technology companies to establish a third smartphone ecosystem — including efforts by Microsoft, BlackBerry, and Samsung with its Tizen platform — have largely failed to gain traction.
However, the AI-agent model could offer a genuine point of differentiation if OpenAI can deliver a seamless, reliable experience. Apple and Google are themselves investing heavily in on-device AI, and both companies have announced plans to integrate more agentic features into their existing platforms.
The reported project would also place OpenAI in more direct competition with its major investors and partners, including Microsoft, which has its own mobile and productivity ambitions, and Apple, which recently announced a partnership with OpenAI to integrate ChatGPT into iOS.
Analysis
Why This Matters
- A successful AI-first smartphone could fundamentally disrupt the app economy, threatening the revenue models of Apple, Google, and thousands of app developers who depend on the App Store and Play Store ecosystems.
- If AI agents replace apps, consumers may interact with technology in a radically different way — raising new questions about privacy, data ownership, and the concentration of AI power in a single device.
- The 2028 timeline gives Apple and Google significant runway to integrate similar agentic features into their existing platforms, potentially neutralising OpenAI's advantage before the device ships.
Background
The smartphone market has been essentially a two-horse race between Apple's iPhone and Google's Android platform since the early 2010s. Apple controls roughly 55–60% of the US market and a significant share of premium global sales, while Android dominates overall global volume.
OpenAI's hardware ambitions became public knowledge in early 2025 when reports emerged of a partnership with Jony Ive, the former Apple design chief responsible for the iMac, iPod, and iPhone. Initial reports described a device focused on ambient AI interaction — listening and responding to context without requiring a screen — rather than a direct phone competitor.
The broader AI industry has been racing to define what "agentic AI" looks like in practice. OpenAI, Google DeepMind, Anthropic, and others have all released or announced AI agent products in 2025 and 2026, but none has yet delivered a consumer hardware platform built around this concept from the ground up.
Key Perspectives
OpenAI: The company has not confirmed the project, but its public strategy has consistently emphasised making AI accessible through multiple interfaces. A proprietary phone would give OpenAI full control of the hardware-software stack, potentially enabling deeper AI integration than is possible on iOS or Android.
Apple and Google: Both companies face a genuine strategic threat if an AI-agent model gains traction. Each has announced significant AI investments — Apple with its Apple Intelligence platform and Google with Gemini — and both are expected to accelerate agentic features in upcoming OS releases, which could make the OpenAI device redundant before it launches.
Critics and Sceptics: Industry observers note that building a successful smartphone ecosystem requires not just compelling hardware, but developer buy-in, carrier relationships, regulatory approval, and consumer trust. All previous attempts to build a third smartphone platform have failed. There is also scepticism about whether AI agents are yet reliable enough to fully replace apps without frustrating users with errors or hallucinations.
What to Watch
- Any official confirmation or denial from OpenAI regarding the smartphone project, which would clarify the report's credibility and the device's scope.
- Apple's WWDC 2026 announcements, expected in June, which may reveal how aggressively the company is integrating agentic AI into iOS — a direct response to the competitive threat.
- Supply chain signals from Asian manufacturers in 2027 that would indicate whether mass production preparation is genuinely underway.
