OpenAI, despite cash burn, is courting chipmakers to build an AI‑first smartphone that could challenge Apple. The effort pairs former Apple design chief Jony Ive with CEO Sam Altman, aiming for a device where an on‑device AI agent handles tasks instead of a sea of apps. Analysts see this as a bid for ecosystem control.

TF Securities analyst Ming‑Chi Kuo posted on X that OpenAI is in talks with MediaTek and Qualcomm to develop a new generation of smartphone processors, with Luxshare slated as the exclusive system‑co‑design and manufacturing partner. Kuo projects a launch around 2028, positioning the handset as a real‑time AI hub that blends on‑device inference with cloud compute.

If the prototype materializes, OpenAI would command both hardware and software, enabling bundled subscriptions and a unified AI experience. Critics note the smartphone market’s maturity makes entry feasible, yet the company’s cash‑flow woes raise questions about scaling production. Regardless, the plan signals a bold attempt to reshape how consumers interact with AI‑driven devices.

The venture mirrors Apple’s tightly integrated model, where a single firm controls OS, silicon and services. Leveraging Ive’s design pedigree and OpenAI’s model ecosystem could lure users dissatisfied with fragmented app experiences. Success would pressure Apple to defend its market share, while failure might accelerate OpenAI’s search for sustainable revenue streams beyond cloud API sales.