OpenAI Set to Redefine Smartphones; MediaTek, Qualcomm & Luxshare Key to Its AI Agent Phone

• Latest industry checks:

OpenAI is working with MediaTek and Qualcomm to develop smartphone processors, with Luxshare as the exclusive system co-design and manufacturing partner. Mass production is expected in 2028.

• AI Agent redefines the smartphone:

Users are not trying to use a pile of apps. They are trying to get tasks done and fulfill needs through the phone. This fundamentally changes how people think about smartphones. I made a smartphone interface concept design, shown at the end of this post, for comparison with today’s model, using the iPhone as an example.

• Why would OpenAI make a phone?

1. Only by fully controlling both the operating system and hardware can OpenAI deliver a comprehensive AI agent service.
2. The smartphone is the only device that captures the user’s full real-time state, which is the most important input for real-time AI agent inference.
3. Smartphones will remain the largest-scale device category for the foreseeable future.

• Tightly integrated cloud and on-device AI:

1. The phone needs to continuously understand the user’s context. Power consumption, memory hierarchy management, and basic small-model execution will be key processor design considerations.
2. More complex or compute-intensive tasks will be handled by cloud AI.

• OpenAI’s advantages lie in its consumer brand, years of accumulated user data, and leading AI models. Smartphone hardware is already highly mature, so OpenAI can work with the supply chain to develop the device. On the business model side, OpenAI may bundle subscriptions with hardware and build a new AI agent ecosystem with developers.

• MediaTek and Qualcomm are processor co-development partners and could benefit from long-term replacement demand:

1. Specifications and suppliers are expected to be finalized by late 2026 or 1Q27.
2. Taking MediaTek × Google TPU Zebrafish as an example, the revenue contribution of a single chip is roughly equivalent to 30–40 AI agent smartphone processors. If the initial target is the global high-end smartphone segment, which ships about 300–400 million units per year, the replacement cycle could become another major growth driver.

• No matter how hard Luxshare tries, it will be difficult for the company to surpass Hon Hai’s assembly position in Apple’s supply chain. That makes this project especially meaningful for Luxshare. With an early position in the supply chain, Luxshare could become a leading beneficiary in the next smartphone generation.