$QCOM OpenAI explores team up with Qualcomm, MediaTek on AI agent phone: analyst

OpenAI (OPENAI) is working with Qualcomm (QCOM) and MediaTek to develop smartphone processors, with Luxshare as the exclusive system co-design and manufacturing partner, according to TF International Securities (HK) analyst Ming-Chi Kuo.
Shares of Qualcomm surged about 12% premarket on Monday.
The analyst noted that mass production is expected in 2028.
"Only by fully controlling both the operating system and hardware can OpenAI deliver a comprehensive AI agent service," said Kuo in a post on X while saying, "Why would OpenAI make a phone?"
Kuo said that OpenAI’s advantages lie in its consumer brand, years of accumulated user data, and leading AI models. Smartphone hardware is already highly mature, so OpenAI can work with the supply chain to develop the device. On the business model side, OpenAI may bundle subscriptions with hardware and build a new AI agent ecosystem with developers, according to the analyst.
In the post, Kuo also made a smartphone interface concept design showing how AI Agent redefines the smartphone, for comparison with today’s model, using the iPhone as an example.
The analyst noted that MediaTek and Qualcomm are processor co-development partners and could benefit from long-term replacement demand.
Specifications and suppliers are expected to be finalized by late 2026 or the first quarter of 2027, according to the analyst.
"Taking MediaTek × Google TPU Zebrafish as an example, the revenue contribution of a single chip is roughly equivalent to 30–40 AI agent smartphone processors. If the initial target is the global high-end smartphone segment, which ships about 300–400 million units per year, the replacement cycle could become another major growth driver," said Kuo.
The analyst noted that no matter how hard Luxshare tries, it will be difficult for the company to surpass Hon Hai Precision's (HNHAF) (HNHPF) — also known as Foxconn (FXCOF) — assembly position in Apple's (AAPL) supply chain. "That makes this project especially meaningful for Luxshare. With an early position in the supply chain, Luxshare could become a leading beneficiary in the next smartphone generation," Kuo added.
OpenAI, Qualcomm, MediaTek, and Luxshare did not immediately respond to Seeking Alpha's request for comment.