OpenAI Smartphone Rumors (3 min read)

OpenAI is reportedly co-developing a processor for smartphones with MediaTek and Qualcomm, with Luxshare serving as the exclusive system co-design and manufacturing partner. Mass production is expected around 2028.

The smartphone is being redefined from a device where you open apps into an AI agent device that reads the user's intent and context to get things done. A new interface concept based on the iPhone has also been proposed alongside this.

There are three key reasons behind this.

• Controlling both the OS and hardware together is necessary to build a complete AI agent service.
• The smartphone is the device that most fully captures a user's real-time state, making it a key input for real-time inference.
• For the time being, the smartphone remains the largest device category.

On-device AI and cloud AI would also divide labor. Since the device must continuously understand user context, power consumption, memory hierarchy management, and running basic small models become core aspects of chip design, while more complex tasks are handled by cloud AI.

On the business side, OpenAI's strengths lie in its consumer brand, accumulated user data, and leading AI models. Since hardware is already mature, it can collaborate with the supply chain, and it could also pursue a model that bundles subscriptions with devices, as well as an AI agent ecosystem for developers.

MediaTek and Qualcomm, as co-development partners, can expect long-term replacement demand. Specifications and suppliers may be finalized between late 2026 and Q1 2027, and looking at the MediaTek × Google TPU Zebrafish case, some analysis suggests that the revenue contribution from a single chip could be equivalent to 30-40 AI agent smartphone processors. If the initial target is a global premium smartphone market of 300-400 million units annually, the replacement cycle itself could become another growth driver.

For Luxshare, which has struggled to surpass Hon Hai in Apple's supply chain, this project is particularly significant. Securing an early supply chain position could establish it as a major beneficiary in the next-generation smartphone ecosystem.