Ming-Chi Kuo: OpenAI Will Redefine Smartphones, MediaTek, Qualcomm, and Luxshare as Key Suppliers for AI Agent Phones

Reported by Golden Finance on April 27, renowned analyst Ming-Chi Kuo released his latest industry survey: OpenAI is collaborating with MediaTek and Qualcomm to develop smartphone processors, with Luxshare serving as the exclusive system co-design and manufacturing partner. Mass production is expected by 2028. • AI Agent Redefines Smartphones: The user's goal is no longer to use a bunch of apps but to execute tasks and fulfill various needs through the phone. This fundamentally overturns the current perception of smartphones. I created a conceptual design of a smartphone interface (attached at the end of the article) for comparison with current designs (using the iPhone as an example). • Why is OpenAI making a smartphone? 1. Only by fully controlling the operating system and hardware can comprehensive AI agent services be provided. 2. Smartphones uniquely possess all of the user's real-time state, which is the most critical input for real-time AI agent inference services. 3. It is evident that smartphones will remain the largest-scale devices in the future. • Highly Integrated Cloud and Device AI: 1. Smartphones need to continuously understand user context; power consumption, memory tier management, and basic small model operations are key considerations in processor design. 2. More complex or intensive demands will be handled by cloud-based AI. • OpenAI's advantages lie in its consumer-facing brand, years of accumulated user data, and leading AI models. Smartphone hardware is already highly mature, allowing OpenAI to collaborate with the supply chain for development. In terms of business models, OpenAI may bundle subscriptions with hardware sales and establish a new AI agent ecosystem in collaboration with developers. • MediaTek and Qualcomm as Processor Development Partners, Long-Term Beneficiaries of Replacement Demand: 1. Specifications and suppliers are expected to be finalized by late 2026 or Q1 2027. 2. Taking MediaTek × Google TPU Zebrafish as an example, revenue from a single AI chip is roughly equivalent to that of 30–40 AI agent smartphone processors. If initially targeting 300–400 million high-end devices globally per year, the replacement cycle will drive another wave of strong momentum. • Despite Luxshare's efforts, it is unlikely to surpass Foxconn's assembly position in Apple's supply chain. Therefore, this project is highly significant for Luxshare, which is expected to benefit from early planning and become a leading beneficiary in the next generation of smartphones. (Dongxin News Agency)