OpenAI wants to take on Apple by developing its own smartphone and chips

Published: 2026-04-28 03:01:12 ET QCOM

Published on 04/28/2026 at 03:01 am EDT

Key Takeaways

OpenAI has set its sights on the smartphone market. The company behind ChatGPT is putting experimental gadgets to one side and opting for a frontal assault on the iPhone. Together with chipmakers Qualcomm and MediaTek, it is working on its own device with a specially designed processor. This surprising move threatens the multibillion‑dollar empire of Apple and could change the entire business model behind mobile applications.

Familiar, classic smartphone

There had previously been a buzz of rumours about smart earbuds and screenless devices. Technology analyst Ming-Chi Kuo now reports that OpenAI is putting those futuristic projects on ice. From now on, the company will focus on the classic smartphone, because consumers are unlikely to swap that device any time soon. To make that dream a reality, OpenAI is enlisting the help of Qualcomm and MediaTek for a powerful chip. Manufacturer Luxshare will ensure the physical assembly runs smoothly.

Life without apps

OpenAI’s approach is very different from what we are used to today. The company assumes that users will soon no longer feel the need for separate applications. A smart assistant takes the helm and continually processes data in the background. The phone records what the user does and immediately carries out small tasks itself. When things really get complicated, the system switches seamlessly to the cloud. By controlling both the hardware and the software, OpenAI is essentially copying the successful playbook of rival Apple.

Foundations shaking

The alarm bells must be ringing in Cupertino by now. Under the current plans, the specifications of the device will be finalised by early 2027 at the latest. OpenAI is also dreaming of a gigantic sales volume of three hundred to four hundred million units per year. That is a grim prospect for Apple, especially since the market leader is currently lagging behind in artificial intelligence and even needs the help of Google for voice assistant Siri. On top of that, OpenAI’s app‑free vision threatens to dry up Apple’s primary source of income. Without the revenues from the App Store, little remains of that position of power. (fc)

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