Qualcomm $QCOM stock climbed about 13% in premarket trading Monday after an analyst reported that OpenAI is working with the chipmaker and Taiwan's MediaTek to develop processors for an AI-first smartphone.

According to Kuo, who posted his findings on X $TWTR, Qualcomm and MediaTek have been tapped as chip development partners, with Luxshare filling the role of exclusive system co-design and manufacturing partner for the device. Kuo put the timeline for mass production at 2028, though he expects the finalization of specifications and suppliers to come earlier, by the end of 2026 or early 2027, Bloomberg reported.

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Qualcomm, OpenAI, MediaTek, and Luxshare did not respond to requests for comment from multiple outlets.

In Kuo's view, OpenAI cannot effectively deliver AI agent services without owning both the software and hardware layers. "Only by fully controlling both the operating system and hardware can OpenAI deliver a comprehensive AI agent service," he said. He further contended that no other device category matches the smartphone's ability to capture what a user is doing in the moment, making it the most valuable source of data for real-time AI inference.

Kuo also sketched out a potential revenue model, suggesting OpenAI might tie hardware sales to subscription plans and cultivate a developer ecosystem around AI agents.

The news rippled through equity markets beyond Qualcomm: Luxshare saw its Shenzhen-listed shares rise as much as 10%, while Apple $AAPL shares dropped as much as 1.9% in New York. An OpenAI smartphone would put the company in direct competition with Apple and Samsung, which together account for roughly 40% of global smartphone sales, according to Reuters.

OpenAI has been expanding into consumer hardware, acquiring designer Jony Ive's startup io for $6.4 billion in equity to develop new AI devices. Altman has publicly positioned the io collaboration as yielding something categorically new — he reportedly described a planned device as a complement to phones and laptops rather than a replacement for either, Reuters noted. Luxshare separately signed a deal with OpenAI to produce consumer devices, according to CNBC.

Shares of Qualcomm, whose Snapdragon chips are a mainstay of the Android ecosystem and whose modems underpin 4G and 5G connections, have shed 13% in 2026 heading into this week. Qualcomm is set to release its second-quarter financial results on Wednesday.

OpenAI is reportedly building an AI smartphone with Qualcomm and MediaTek chips

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