Is OpenAI also going to make phones? Guo Mingchi: collaborating with Qualcomm (QCOM.US) and MediaTek to develop smartphone chips.

According to Tianfeng International Securities analyst Guo Mingchi, OpenAI is collaborating with Qualcomm and MediaTek to develop smartphone processors, with Luxshare Precision Industry as its exclusive system joint design and manufacturing partner. The analyst pointed out that mass production is expected to be achieved by 2028. As of the time of writing, QUALCOMM Incorporated's stock price surged by about 12% in pre-market trading on Monday. Guo Mingchi posted on X platform stating: "Only by fully controlling the operating system and hardware can OpenAI provide comprehensive AI agent services." Guo Mingchi also provided a conceptual design of the smartphone interface and compared it with current smartphones represented by the iPhone. He believes that the reason OpenAI is developing its own smartphone is mainly due to its advantages in consumer brand, years of accumulated user data, and leading AI models. Additionally, smartphone hardware is already very mature, so OpenAI can collaborate with the supply chain to develop devices. In terms of business model, this analyst believes that OpenAI may bundle subscription services with hardware sales and work with developers to create a new AI agent ecosystem. The analyst pointed out that MediaTek and Qualcomm are partners in processor joint development and may benefit from long-term replacement demand. He stated that specifications and suppliers are expected to be finalized by the end of 2026 or the first quarter of 2027. Guo Mingchi stated: "Taking MediaTek Alphabet Inc. Class CTPU 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 an annual shipment of approximately 300-400 million units in the global high-end smartphone market, then the replacement cycle could become another major growth driver." For Luxshare Precision Industry, this collaboration is particularly significant. Guo Mingchi pointed out that no matter how hard Luxshare Precision Industry tries, it is difficult to surpass Foxconn's assembly position in Apple Inc.'s supply chain. Therefore, by positioning themselves early in the OpenAI supply chain, Luxshare Precision Industry is expected to be one of the major beneficiaries of the next generation of smartphones.