OpenAI is Reportedly Working On a Custom Smartphone Processor

OpenAI is reportedly exploring a move into smartphones through a custom processor project with Qualcomm and MediaTek, according to analyst Ming-Chi Kuo.

The report suggests OpenAI may be shifting focus from earlier standalone AI hardware concepts toward the smartphone market.

According to Kuo, OpenAI is now working with Qualcomm and MediaTek on a dedicated smartphone processor. Luxshare is reportedly expected to act as a key assembler for the device.

The processor is said to be designed around OpenAI’s vision of AI-first computing, where users rely less on traditional apps and more on real-time AI agent assistance powered by both on-device and cloud models.

How The Device Could Work

The reported strategy would use smartphone hardware to continuously gather user context, manage memory resources, and provide computing power for on-device AI tasks. More demanding workloads would be handled through cloud processing.

Kuo reportedly believes smartphones will remain the largest consumer device category for the foreseeable future.

Timeline and Scale

The report says specifications for the device may be finalized by late 2026 or the first quarter of 2027.

It also claims OpenAI could target high-end annual shipment volumes of 300 million to 400 million units, though no official confirmation has been provided.

Potential Impact on Apple

If OpenAI enters the smartphone market, it could create new pressure for Apple, particularly as AI becomes a larger part of mobile software competition.

Apple is already expected to use Google Gemini models for parts of its future Siri upgrades, according to earlier reports.

At present, OpenAI has not officially announced any smartphone hardware plans.

Earlier Consumer Device Plans

OpenAI has previously been linked to several AI-focused consumer devices. These reportedly included AI-powered earbuds under the internal codename “Sweetpea,” which may have launched under the “Dime” brand. The device was said to rely mainly on cloud-based AI processing with some local processing through a Samsung 2nm Exynos chip.

Another reported concept, codenamed “Gumdrop,” was described as a pen-shaped device similar in size to an Apple iPod Shuffle.

That product was said to feature cameras and microphones for contextual awareness, local AI processing with cloud support, handwritten note conversion to text, ChatGPT syncing, and communication with similar devices. It was reportedly expected in 2026 or 2027.