OpenAI is accelerating development of its first AI agent phone, targeting mass production by early 2027, per analyst Ming-Chi Kuo. The device will leverage MediaTek and Qualcomm chips, with Luxshare Precision Industry as the exclusive manufacturer. Kuo cites OpenAI's planned IPO and competitive pressures in AI agent phones as drivers for the revised timeline.

The phone’s headline feature is its image signal processor, enhanced with an HDR pipeline to improve real-world sensing. It will use two AI processors for multitasking (e.g., vision and language) and prioritize security via isolated processes. Kuo predicts 30 million units shipped between 2027-2028 if development stays on track. The push for vertical integration—controlling both OS and hardware—aims to create a seamless AI experience, shifting user interaction from app-launching to task completion.

Concurrently, OpenAI is developing a screenless AI device, initially reported as a smart speaker with a camera, delayed to early 2027. This follows the acquisition of Jony Ive’s io Products, with CEO Sam Altman calling it the “coolest technology ever.” Apple, meanwhile, is rumored to pursue AI wearables, including camera-equipped AirPods and a smart home hub.

The move positions OpenAI as a direct hardware rival to Apple, potentially reshaping consumer tech. Analysts speculate whether the AI phone’s success hinges on balancing innovation with practicality, especially amid supply chain complexities and market saturation.