According to multiple media reports, artificial intelligence (A.I.) start-up company OpenAI is planning to develop and launch a smartphone.
Those reports say that OpenAI is collaborating with Qualcomm (QCOM) and other chipmakers to develop processors for a new A.I.-powered smartphone it has in development.
Mass production of the phone is expected to begin in 2028.
Qualcomm shares were up 12% in premarket trading on media reports that it has been tapped by OpenAI to develop its smartphone chips.
At the same time, the stock of Apple (AAPL) is down nearly 2%. Apple’s iPhone is seen as potentially being disrupted by OpenAI’s new smartphone.
Apple is under pressure to add more A.I. features to future versions of the iPhone and to update its Siri digital assistant with A.I. capabilities.
In 2025, OpenAI announced that it was buying a start-up firm owned by Jony Ive, Apple’s former chief design officer, for $6.4 billion U.S.
The smartphone would be OpenAI’s first hardware product. Until now, the start-up company has stuck to developing A.I. chatbots and models.
Prior to today (April 29), QCOM stock had declined 14% this year to trade at $148.85 U.S. per share.
