OpenAI Eyes Smartphones with Chip Partners Qualcomm, MediaTek
Qualcomm shares rose 13% on report of the OpenAI smartphone chip deal
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Image Credit- Krishna Prasad/ MIT Sloan Management Review Middle East
As artificial intelligence reshapes competitive dynamics across industries, attention is shifting from software models to the hardware ecosystems that will deliver them. For business leaders in the Middle East, where investments in AI infrastructure, smart devices, and digital transformation are accelerating, emerging alliances between chipmakers and AI firms point to a new battleground: AI-native consumer devices.
Against this regional backdrop, shares of Qualcomm rose 13% in premarket trading Monday following an analyst report that OpenAI is collaborating with the chipmaker and Taiwan-based MediaTek to develop next-generation smartphone processors.
According to Ming-Chi Kuo of TF International Securities, Qualcomm and MediaTek are co-development partners on an AI-first smartphone initiative led by OpenAI, with mass production anticipated by 2028. Kuo shared the details in a post on X.
Kuo also indicated that China-based Luxshare would serve as the exclusive system design and manufacturing partner for the device. The analyst, widely followed for his track record on Apple product forecasts, did not cite direct confirmation from the companies, which have yet to comment publicly.
The report adds a new dimension to OpenAI’s ongoing exploration of consumer hardware. The company last year acquired io Products, a startup founded by former Apple design chief Jony Ive, for $6.5 billion, appointing him to lead device development efforts.
However, earlier reporting has suggested that OpenAI’s ambitions may extend beyond traditional smartphones. CEO Sam Altman reportedly told employees the product would be a “third core device” alongside phones and laptops, according to The Wall Street Journal.
At the same time, OpenAI has scaled back several experimental initiatives to concentrate on enterprise-focused coding tools — one of the few AI segments currently demonstrating clear commercial viability.
A move into smartphones would place OpenAI in direct competition s with Apple and Samsung, which together account for roughly 40% of the global smartphone market. It would also reinforce expectations that smartphones will remain central in the AI era, even as new device categories emerge.
Recent signals from other technology firms point in a similar direction. Amazon is reportedly preparing a renewed push into the handset market, underscoring continued strategic interest in mobile hardware.
Meanwhile, Apple shares slipped 1.7%. The company recently appointed long-time hardware chief John Ternus as CEO, highlighting the enduring importance of devices to its business as it works to strengthen its AI capabilities.
