Qualcomm shares jumped Monday after a report from analyst Ming-Chi Kuo said OpenAI is working with Qualcomm and MediaTek on smartphone processors, putting fresh attention on a possible AI-focused phone effort and the companies that could support it.
The report said Luxshare would be the exclusive partner for system co-design and manufacturing, while mass production of the chips is expected to begin in 2028. At the same time, neither Qualcomm nor OpenAI has confirmed the reported partnership, and the analyst’s post did not cite sources or points of reference.
Qualcomm Shares React
The market response was immediate, even if the move did not fully hold through the day. Qualcomm shares rose as much as 8% on Monday after already gaining 11% on Friday, before later falling as much as 1.2% during the same session.
That swing showed how seriously investors took the report, even without official confirmation from the companies involved. Qualcomm’s stock was still down 12% year to date at the time, which helps explain why any sign of a deeper role in AI hardware drew strong interest from traders.
The report also stood out because it suggested something larger than a typical supplier relationship. Qualcomm has previously worked on hardware tied to OpenAI technology, including the Humane AI Pin, but a smartphone project would represent a deeper partnership than earlier collaborations if Kuo’s claims prove accurate.
What the Report Says
According to Kuo, OpenAI is working with both Qualcomm and MediaTek to develop smartphone processors for a device centered on AI agents. The project reflects OpenAI’s plan to build a smartphone focused on AI agents, as users shift from relying on many apps to completing tasks directly through AI systems.
Kuo also laid out why he believes a smartphone matters for OpenAI’s broader ambitions. He said only full control of both hardware and the operating system would allow OpenAI to deliver a complete AI agent service. He also said the smartphone is the only device that captures a user’s full real-time state, which he described as the most important input for real-time AI agent inference. In the same comments, he said smartphones will remain the largest-scale device category for the foreseeable future.
The report included a rough development timeline as well. Kuo expects key details such as specifications and suppliers to be finalized by late 2026 or early 2027. The chips could target the high-end smartphone market, which he described as a segment with annual shipments of around 300 million to 400 million units.
What Remains Unclear
For now, the biggest unanswered question is whether the reported collaboration is real and how far along it may be. Neither Qualcomm nor OpenAI has issued a statement confirming the partnership or the smartphone claims.
There is also a long gap between the report and any possible commercial rollout. Mass production is expected in 2028, which means any direct business impact would likely come much later rather than in the near term.
OpenAI’s wider hardware plans add another layer to the story. The company has shown ambitions in hardware before, but has not been focused on smartphones, and recently revealed that the device Apple designer Jony Ive has been working on would not be released until February 2028.
Even so, Kuo’s report suggested OpenAI may be thinking beyond a single device. He believes OpenAI could combine hardware with subscription-based services and build a developer ecosystem around AI agents, while also arguing that the company’s existing AI models and user base could support an eventual move into the smartphone market.
