Business

Qualcomm Surges on OpenAI Tie-Up for AI Smartphone Processors
By Reuters | 27 Apr, 2026

Qualcomm shares jumped 13% in premarket trading after an analyst said the chip designer and Taiwan's MediaTek are working with OpenAI.

Qualcomm shares jumped 13% in premarket trading on Monday after an analyst said OpenAI was working with the chip designer and Taiwan's MediaTek to develop smartphone processors.

Qualcomm and MediaTek are co-development partners for an AI-first smartphone that the ChatGPT creator is planning, with mass production likely in 2028, TF International Securities analyst Ming-Chi Kuo said in a post 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, who is based in Taiwan and known for his accurate predictions on Apple's products.

The companies did not immediately respond to requests for comment.

OpenAI has been exploring consumer AI devices for years and last May acquired Jony Ive's startup io Products for $6.5 billion, tapping the former Apple designer to lead the efforts.

But media reports have indicated that the planned device would not be a smartphone. Altman told employees it would be a "third core device" alongside phones and laptops, the Wall Street Journal reported last year.

The loss-making startup has also pulled back from side projects to focus on coding tools for businesses - one of the few AI areas with clear commercial traction.

Launching a smartphone would pit OpenAI directly against deep-pocketed rivals Apple and Samsung, which together command about a 40% share of the global market for the device.

It would also add to signs that the smartphone would likely retain its central role in people's lives in the AI era, after Reuters reported last month that Amazon was planning a fresh push into the handset market.

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

(Reporting by Deborah Sophia in Bengaluru; Editing by Arun Koyyur)