Qualcomm has reportedly agreed to build processors for a new OpenAI smartphone, briefly sending its shares up 7%.
Semiconductor company MediaTek will also work with OpenAI and Qualcomm to develop the chip, according to TF International Securities analyst Ming-Chi Kuo. The phone will be co-designed by China-based Apple supplier Luxshare.
“Only by fully controlling both the operating system and hardware can OpenAI deliver a comprehensive AI agent service,” wrote Kuo. “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.”
“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.”
Mass production of the device is expected in 2028, according to Kuo. Specifications and suppliers for the processors would also be finalised by late 2026 or early 2027.
Qualcomm and MediaTek could benefit from long-term replacement demand under the partnership, Kuo said.
While the companies have not publicly confirmed these plans, OpenAI acquired former Apple design head Jony Ive’s startup for $6.4 billion last year in a bid to produce AI devices. These would reportedly include a smart speaker and a smart lamp, and the company is considering AI-enhanced glasses.
Luxshare agreed to partner with OpenAI to build a consumer AI device last year, The Information previously reported.
Shares in Qualcomm (NASDAQ: QCOM) jumped 7% after trading opened before closing 1% higher at US$150.26, and climbed a further 0.4% after-hours. Its market capitalisation is $160.33 billion.
