OpenAI is reportedly moving faster on plans to develop an AI agent smartphone that could enter mass production by 2027, marking a potential expansion from software into consumer hardware.



<h2>AI Smartphone Push Gains Momentum</h2>



Analyst Ming-Chi Kuo said in a post on X that OpenAI &#34;may be accelerating the development of its first AI agent smartphone,&#34; with mass production targeted for the first half of 2027.



He added that the move could be driven by &#34;a favorable year-end IPO narrative&#34; and rising competition in AI-focused devices.



Kuo said MediaTek is &#34;more likely to secure the exclusive processor order,&#34; with the device expected to use a customized Dimensity 9600 chip manufactured by TSMC using its advanced N2P process. 



He also pointed to expected hardware upgrades, including a dual NPU design for AI computing, faster LPDDR6 memory, UFS 5.0 storage and enhanced security features such as pKVM and inline hashing.



&#34;If development proceeds smoothly, shipments are projected to total approximately 30 million units in 2027 and 2028 combined,&#34; Kuo wrote.



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<blockquote>【產業調查更新】OpenAI 可能正加速首款 AI agent 手機開發，目標最快於 1H27 量產，考量原因或包括有利年底 IPO 敘事、AI agent 手機競爭加速等。目前聯發科更有可能獨家取得處理器訂單，該機預計採用基於天璣 9600 的客製版本，並於 2H26 由台積電 N2P 生產。ISP… https://t.co/EYEtbWf16X— 郭明錤｜Ming-Chi Kuo (@mingchikuo) May 5, 2026</blockquote>
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<h2>OpenAI AI Smartphone Aims To Replace Apps</h2>



Last week, OpenAI was reportedly exploring an AI smartphone concept aimed at replacing app-based usage with a task-driven AI assistant.



Kuo said that OpenAI was working with MediaTek, Qualcomm Inc. (NASDAQ:QCOM), and Luxshare on a potential &#34;AI agent&#34; smartphone expected for mass production as early as 2028.



The report stated, &#34;Users are not trying to use a pile of apps. They are trying to get tasks done and fulfill needs through the phone,&#34; highlighting the shift in device usage.



It also noted that full control of hardware and software was seen as key to delivering a complete AI agent experience.



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<h2>OpenAI Hardware Shift</h2>



Earlier, OpenAI was reportedly shifting its first AI hardware project to Foxconn Technology Group, moving production from Luxshare due to supply-chain concerns.



The &#34;Gumdrop&#34; device was expected to be assembled in Vietnam or the U.S. and could launch in 2026 or 2027.



Separately, OpenAI planned to integrate its Sora AI video tool into ChatGPT while keeping it available as a standalone app, as it positioned itself to compete with Meta Platforms (NASDAQ:META) and Google (NASDAQ:GOOG) (NASDAQ:GOOGL). 



The move was seen as part of a broader push into video AI, though it could increase chatbot usage and costs.



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Image via Shutterstock



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OpenAI

OpenAI is accelerating the development of an AI agent smartphone, targeting mass production by the first half of 2027. Analyst Ming-Chi Kuo noted that this move may be influenced by a favorable IPO narrative and increasing competition in AI devices. The smartphone is expected to feature a customized MediaTek Dimensity 9600 chip and advanced hardware upgrades. If successful, shipments could reach around 30 million units by 2028. OpenAI aims to shift from app-based usage to a task-driven AI assistant, emphasizing the importance of controlling both hardware and software for a complete experience.

OpenAI Eyes Consumer Hardware Leap With AI Agent Phone by 2027