ChatGPT developer prepares its AI smartphone - Analyst. Who will benefit from it?
Shares of semiconductor developer Qualcomm rose more than 2% on April 27. Market participants reacted to reports that the company may cooperate with ChatGPT developer OpenAI in a project to create a smartphone with AI agents, Barron's and Seeking Alpha took notice.
Details
That OpenAI is considering partnering with San Diego-based Qualcomm as part of its potential entry into the hardware market, as well as other smartphone processor companies, was originally reported by TF International Securities analyst Ming-Chi Kuo on April 27 in social network X. The Wall Street Journal writes that Kuo often publishes analysis and news of tech companies on X. Barron's notes that the expert is known for his observations of supply chains in the technology industry. Seeking Alpha writes about the project as a future "development of a cell phone with an AI agent".
According to Kuo, the project to create processors for smartphones with OpenAI and Qualcomm also involves Taiwanese semiconductor manufacturer MediaTek, as well as Chinese company Luxshare, which is expected to be the exclusive partner for the joint development and production of systems. Their launch into mass production is expected in 2028, the analyst said.
"From a business model perspective, OpenAI can bundle subscriptions [to AI services] with hardware into a single package and create a new AI agent ecosystem," Kuo noted. Among OpenAI's advantages in the smartphone market, the analyst named its recognizable brand, accumulated user data, and advanced AI models. In general, Kuo pointed out, smartphone manufacturing technologies have become standardized, so OpenAI can create a phone by working with a chain of suppliers.
"Only by fully controlling both the operating system and the hardware will OpenAI be able to provide a comprehensive AI agent service," the analyst added.
Representatives for OpenAI and Qualcomm did not respond to Barron's requests for comment.
What's on the market
Qualcomm shares soared by 13% on the pre-market on April 27 amid news about possible cooperation with OpenAI. After the opening of the trading session in the U.S., they added 2.39%. Meanwhile, shares of Apple, the iPhone maker, are losing about 1%.
For chipmaker Qualcomm, another major customer capable of competing with Apple in the smartphone market could provide significant business support, Barron's notes. The company makes modem systems for the iPhone, but Apple is now developing its own such modems, and even more advanced systems could also be on the horizon, the publication points out.
This article was AI-translated and verified by a human editor
