Industry analyst Ming-Chi Kuo has dropped a bombshell: OpenAI might be crafting a smartphone that could do away with traditional apps, instead relying on AI agents to handle tasks. This move would allow the company to sidestep restrictions imposed by Apple and Google.

The plan involves developing a custom smartphone chip in collaboration with MediaTek and Qualcomm, with Luxshare contributing as co-designer and manufacturer. Kuo speculates that OpenAI's phone could gather more user data than apps can, enhancing its understanding of users' contexts.

With the company's AI platform ChatGPT nearing one billion weekly users, a physical product for daily use could significantly boost its reach. Earlier this year, Chris Lehane, Chief Global Affairs Officer at OpenAI, hinted that they were on track to unveil their first hardware product in 2026.

Vibe coding app makers also foresee a future where apps are obsolete. As Kuo notes, the smartphone would feature a mix of small on-device AI models and cloud-based solutions, designed to continuously understand user contexts. Mass production is expected to start by 2028, with specifications and component suppliers set to be finalized by year-end or early 2027.