OpenAI is making its own phone to compete with the iPhone: report

OpenAI’s hardware ambitions have been no secret, but the company has long indicated it’s not making a phone. But a new report says that’s no longer the case, and an iPhone competitor from OpenAI is now in the works.

If you’ve followed OpenAI hardware rumors, you’ll know that the company is working with former Apple design chief Jony Ive on a suite of AI-infused hardware devices.

The first product expected to launch is a new HomePod-type smart speaker infused with ChatGPT and built-in camera. Smart glasses and a smart lamp are also reportedly in development.

While previous reporting has consistently said that OpenAI is not working on a phone, it seems that’s no longer the case.

Here’s analyst Ming-Chi Kuo, in a post on X:

Kuo also explains his belief that AI agents will shape the OpenAI smartphone, making it work and feel very different from an iPhone.

In what’s probably no coincidence, OpenAI CEO Sam Altman posted the following on X yesterday:

While OpenAI clearly believed at one point that it could disrupt the iPhone with its first AI devices, perhaps it now sees the smartphone as central to AI uses for many years to come.

That sounds a lot like the belief of Perplexity CEO Aravind Srinivas, who said last week that “the iPhone is actually not getting disrupted by AI at all.” He instead argued that as AI improves, the iPhone becomes even more valuable to users.

What do you think of OpenAI creating its own phone? Let us know in the comments.