OpenAI may design its own chip for an AI-first smartphone

OpenAI is reportedly developing a custom smartphone chip in collaboration with Qualcomm and MediaTek, targeting mass production by 2028 with a focus on on-device AI performance rather than raw computing power. This strategic move positions OpenAI to compete directly with Apple and Google by bundling AI agent subscriptions with hardware, fundamentally shifting the smartphone paradigm from app-based to AI agent-based interactions. For IT leaders, this signals an emerging competitive landscape where traditional hardware-software boundaries blur and enterprise mobility strategies must account for AI-native platforms and new subscription-based service models.