There’s been plenty of speculation about OpenAI’s hardware ambitions, with recent rumors pointing to a pair of earbuds. However, a new report from industry analyst Ming-Chi Kuo suggests the AI company might be developing a smartphone in partnership with MediaTek, Qualcomm, and Luxshare. Kuo, known for his accurate predictions about Apple’s hardware plans, stated that OpenAI would co-develop a smartphone chip with MediaTek and Qualcomm, while Luxshare would serve as a co-design and manufacturing partner.

Instead of relying on traditional apps, Kuo’s note indicates the smartphone could use AI agents to handle various tasks. Currently, Apple and Google control the app ecosystem and limit the system access available to third-party apps, restricting certain functions. By building its own smartphone and hardware stack, Kuo suggests OpenAI could integrate AI into all features without these limitations. With ChatGPT approaching a billion weekly users, a daily-use hardware product could also support OpenAI’s goal of reaching more consumers.

This idea isn’t unique to OpenAI. Developers working on vibe coding apps are already predicting an app-free future. Nothing CEO Carl Pei said at SXSW that apps will eventually disappear. Kuo believes OpenAI’s smartphone would be designed to continuously understand user context. By offering the device itself, the company could gather more data about user habits than an app could. He also mentioned that OpenAI would combine small on-device models with cloud models to handle different types of requests and tasks.

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According to Kuo, the smartphone’s specifications and component suppliers are expected to be finalized by the end of the year or the first quarter of 2027, with mass production slated for 2028. Earlier this year, OpenAI’s Chief Global Affairs Officer, Chris Lehane, said the company is on track to announce its first hardware product in the second half of 2026. At that time, several reports suggested the device could be uniquely designed earbuds. OpenAI did not comment on the story when contacted.