OpenAI is engineering a smartphone that it intends to pit directly against the iPhone, a sharp turn from its earlier focus on non‑screen devices. Analyst Ming‑Chi Kuo’s supply‑chain probe, released in late April, describes the unit as an “AI agent phone” that replaces discrete apps with a continuous, context‑aware interface. Controlling both OS and hardware, OpenAI hopes to deliver a seamless AI‑driven experience.

The handset will run a custom MediaTek Dimensity 9600 chip fabricated on TSMC’s N2P node, with production slated for the second half of 2026. Luxshare Precision Industry is named as the sole assembler, while Sunny Optical supplies the camera module featuring an enhanced HDR pipeline and dual AI processors for vision and language tasks. Kuo forecasts combined 2027‑2028 shipments of roughly 30 million units.

OpenAI’s pivot challenges Apple, which is rumored to be working on its own AI‑enhanced wearables and a smarter Siri hub. The company has poached over 40 former Apple engineers, prompting Apple to offer retention bonuses up to $400,000. With a target launch in early 2027, the phone could become the centerpiece of OpenAI’s IPO narrative and a direct competitor to the iPhone.