![\"OpenAI](\"https:\/\/static.toiimg.com\/thumb\/msid-130551765,imgsize-53780,width-400,height-225,resizemode-4\/openai-reportedly-working-with-mediatek-qualcomm-on-smartphone-chips.jpg\")
<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\nOpenAI is reportedly working with chipmakers MediaTek and Qualcomm to develop processors for smartphones. Popular analyst Ming-Chi Kuo recently shared a post on X (formerly known as Twitter), where he said that the project also involves Luxshare as an exclusive partner for system co-design and manufacturing. Kuo said mass production of the chips is expected to begin in 2028. Kuo said the move reflects OpenAI\u2019s plans to build a smartphone focused on AI agents. According to the post, users are shifting from using multiple apps to completing tasks directly through AI systems. Highlighting why would OpenAI make a phone, Kuo said:\u201c1. 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\u2019s 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.\u201d<\/p>\n According to Kuo, details such as specifications and suppliers are expected to be finalised by late 2026 or early 2027. The chips could target the high-end smartphone market, which sees annual shipments of around 300 to 400 million units. He said the project could also benefit companies involved in the supply chain. Luxshare, in particular, may gain from its role in the project.Kuo said OpenAI may combine hardware with subscription-based services and build a developer ecosystem around AI agents. He added that OpenAI\u2019s existing AI models and user base could support its entry into the smartphone market.<\/div>\n<\/div>\nOpenAI smartphone chip: Supply chain and timeline
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