Qualcomm is one of the largest semiconductor companies that manufactures chipsets.
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Qualcomm Shares rose on Monday after reports the company is partnering with OpenAI to develop smartphone processing chips to advance the AI company’s hardware ambitions.
US smartphone chip maker plans to partner with Taiwanese semiconductor company media tech Joint development of OpenAI chip with Chinese manufacturer Lux share Ming-Chi Kuo, an analyst at TF International Securities, which co-designed and manufactured the device, told X on Monday. Mass production of the device is scheduled for 2028, Kuo said.
Qualcomm rose 7% immediately after the opening bell. The stock is down 13% since the beginning of the year.
Qualcomm’s stock price since the beginning of the year.
Qualcomm, OpenAI and MediaTek did not immediately respond to CNBC’s request for comment confirming the partnership.
“Only by having complete control over both the operating system and hardware can OpenAI provide comprehensive AI agent services,” Kuo said in the post. “The smartphone is the only device that captures the complete real-time state of the user, which is the most important input for real-time AI agent inference.”
He explained that smartphones will continue to be the “largest device category” for the foreseeable future, and that OpenAI has accumulated user data over the years, so it makes sense to develop a device that is run entirely by AI.
“Smartphone hardware is already highly mature, so OpenAI can work with the supply chain to develop the device,” Kuo said. “In terms of business model, OpenAI could bundle subscriptions with hardware and build a new AI agent ecosystem with developers.”
OpenAI smartphone ambitions
Qualcomm designs chips and wireless technology for smartphones and other devices, and is best known for the Snapdragon processors in many Android smartphones and the modem technology that enables mobile connectivity such as 4G and 5G.
It probably won’t be a surprise that OpenAI will partner with the company after the acquisition to help realize its smartphone plans. appledesign chief Jony Ive’s startup io took a $6.4 billion stake last year to design new AI devices expected to be unveiled within two years.
Altman said last year that the devices OpenAI is designing with io will be different from smartphones. “You get to know everything you’ve ever thought, read, said,” he said, comparing it to walking through Times Square.
“That way you get an atmosphere where you’re not walking through Times Square and bumping into each other and everything is competing for your attention,” Altman said. “But it’s like sitting by the lake or in the most beautiful cabin in the mountains and just enjoying the peace and quiet.”
Additionally, in September it was reported that Luxshare had signed a deal with OpenAI to produce consumer devices.
