OpenAI is accelerating the development of its first proprietary “AI agent phone,” according to a recent industry update from prominent supply chain analyst Ming-Chi Kuo. The device is reportedly targeting mass production as early as the first half of 2027 (1H27).
This strategic hardware initiative appears to be driven by two primary factors: the need to bolster a potential year-end Initial Public Offering (IPO) narrative and the desire to establish a foothold amid intensifying competition in the emerging AI hardware market.
Hardware Partnerships and Silicon
To power the device, OpenAI is reportedly turning to MediaTek. Kuo’s supply chain checks indicate that MediaTek is currently positioned to be the sole processor supplier for the smartphone.
The device is expected to feature a customized iteration of MediaTek’s Dimensity 9600 chipset. This silicon will be manufactured using TSMC’s advanced N2P process node, with chip production scheduled for the second half of 2026 (2H26) ahead of the phone’s 2027 launch.
Key Technical Specifications
The report outlines several specialized hardware specifications designed specifically to support on-device artificial intelligence and agentic workflows.
Core hardware details include:
- Advanced Visual Sensing: The Image Signal Processor (ISP) is described as the device’s “headline spec.” It features an enhanced HDR pipeline intended to significantly improve the AI agent’s ability to process and understand real-world visual data.
- AI Compute Capabilities: The system-on-chip will utilize a dual-NPU (Neural Processing Unit) architecture, allowing for heterogeneous AI computation to handle complex, concurrent AI tasks efficiently.
- Memory and Storage: To mitigate memory bottlenecks associated with large on-device AI models, the phone will be equipped with next-generation LPDDR6 RAM and UFS 5.0 storage.
- Enhanced Security: The device will incorporate pKVM (Protected Kernel Virtual Machine) and inline hashing to ensure robust security for sensitive AI operations and user data.
Market Outlook and Production Projections
If OpenAI and its hardware partners can maintain the current development trajectory without significant delays, Kuo estimates substantial volume for the initial release. Combined shipment forecasts for the AI agent phone are projected to reach approximately 30 million units across the 2027 and 2028 calendar years.