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OpenAI AI Smartphone Processor Collaboration Fuels Qualcomm Share Surge

  • 2 hours ago
  • 2 min read

Qualcomm shares rose 13% in premarket trading following an analyst report about OpenAI's collaboration with the chip designer and Taiwan's MediaTek. The partnership aims to develop smartphone processors.


Qualcomm building against a clear blue sky. The company's blue and white logo is prominently displayed on the beige facade.
Credit: Ariana Drehsler/Bloomberg

TF International Securities analyst Ming-Chi Kuo reported that OpenAI, the creator of ChatGPT, plans an AI-first smartphone. Qualcomm and MediaTek are listed as co-development partners for this device.


Mass production for the AI-first smartphone is anticipated in 2028. Kuo shared this information on social media platform X.


China's Luxshare, an Apple supplier, is the exclusive system design and manufacturing partner for the device, according to Kuo. The analyst, based in Taiwan, is known for his accurate predictions regarding Apple products.


OpenAI has explored consumer AI devices for years. The organisation last May acquired Jony Ive's startup io Products for $6.5 billion. Ive, a former Apple designer, was tapped to lead these efforts.


However, media reports have suggested the proposed device may not be a smartphone. Altman reportedly informed employees that the device would be a "third core device," alongside phones and laptops, according to The Wall Street Journal.


The startup, which is currently loss-making, has also reduced its focus on side projects. Instead, it is concentrating on coding tools for businesses, an AI area demonstrating clear commercial traction.


Launching a smartphone would position OpenAI directly against deep-pocketed rivals such as Apple and Samsung. These two companies collectively hold approximately a 40% share of the global smartphone market.


Such a move would also add to signs that the smartphone would likely retain its central role in daily life during the AI era. Reuters reported last month that Amazon is also planning a renewed push into the handset market.


Apple shares decreased by 1.7%. The company last week named long-time hardware chief John Ternus as CEO. This is a sign that devices would continue to play a central role in Apple's business, even as it looks to catch up in offering AI to users.

  • Qualcomm shares surged 13% in premarket trading on Monday after a report detailing an OpenAI partnership with the chip designer and Taiwan's MediaTek for AI smartphone processors.

  • OpenAI is reportedly collaborating with Qualcomm and MediaTek to develop processors for an AI-first smartphone.

  • Mass production for the device, for which Luxshare is the exclusive system design and manufacturing partner, is likely in 2028.


Source: REUTERS

 
 
 

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