OpenAI Plans AI-Centric Smartphone Launch by 2027

OpenAI is reportedly accelerating its plans to launch an artificial intelligence-focused smartphone, targeting mass production for the first half of 2027. This shift from previous projections of a 2028 launch comes as competition in the AI hardware sector intensifies, according to analyst Ming-Chi Kuo from TF International Securities.

The smartphone is expected to feature a custom processor based on MediaTek’s Dimensity 9600 platform, which focuses on AI-driven interactions. Initial plans indicated involvement from both MediaTek and Qualcomm as chip suppliers, but recent updates suggest MediaTek may be the primary contender for this project. The proposed chipset is anticipated to enter production by the latter half of 2026, utilising TSMC’s advanced N2P manufacturing process.

Designed with a focus on AI computing, the device may incorporate a dual-NPU (Neural Processing Unit) architecture, capable of handling multiple AI tasks like language comprehension and visual recognition simultaneously. Additionally, specifications such as LPDDR6 memory and UFS 5.0 storage are expected to facilitate rapid on-device processing.

The imaging capabilities of the phone will also be pivotal, featuring an enhanced image signal processor to improve real-time scene recognition and visual understanding, particularly in higher dynamic range (HDR) scenarios.

On the security front, the device is likely to implement technologies such as pKVM (kernel virtual machine) and inline hashing to bolster on-device AI processing and data protection.

Diverging from traditional app-centric smartphone interfaces, the design aims to leverage an AI agent-based system. This would allow users to directly communicate tasks to the AI, which would then execute actions in the background. Task-oriented updates including reminders, bookings, and daily activities may be presented through an interface showcasing progress indicators, enhancing user experience.

OpenAI's phone is expected to blend on-device AI computing with cloud processing, where less demanding tasks will be processed locally for speed and privacy, while more complex tasks will utilise cloud resources.

Should development proceed as intended, Kuo estimates that shipments could reach around 30 million units between 2027 and 2028. Furthermore, OpenAI's venture into the smartphone market could provide greater control over both hardware and software experiences for AI services. Currently, tools such as ChatGPT function within established mobile ecosystems like Android and iOS, which can limit their capabilities.

In tandem with this smartphone initiative, OpenAI is also exploring other AI hardware innovations, collaborating with former Apple designer Jony Ive on concepts that could include a compact, screen-less device focused on audio and video interaction.