Could This New AI Smartphone Compete With Apple? Qualcomm Shares Rise

BreakingBusinessCould This New AI Smartphone Compete With Apple?

Qualcomm Shares RiseByTy Roush,Forbes Staff. Ty Roush is a breaking news reporter based in New York City.Follow AuthorApr 27, 2026, 10:29am EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.ToplineQualcomm shares rallied early Monday after a tech industry analyst reported the chipmaker partnered with OpenAI to develop a smartphone, following speculation of what could be the AI giant’s first hardware after CEO Sam Altman teased fully AI-powered “companions.” Sam Altman planned to develop AI “companions” after OpenAI added Apple’s famed designer last year. NurPhoto via Getty ImagesKey FactsShares of Qualcomm rose nearly 8% at the open on Monday, adding to a 17% rally over the last month as of Friday, when shares jumped more than 11%.Ming-Chi Kuo, an analyst at TF International Securities, said late Saturday Qualcomm will work with Taiwanese semiconductor firm MediaTek to develop a smartphone chip for OpenAI, and Chinese manufacturer Luxshare will co-design and build the device.Mass production of the device is expected by 2028, Kuo said, but noted “specifications and suppliers” will be finalized by late 2026 or the first quarter of 2027.Neither Qualcomm nor OpenAI immediately responded to Forbes’ request for comment.Openai’s Plans For An Ai DeviceAltman reportedly told OpenAI employees he and Jony Ive, the famed Apple designer who joined OpenAI last year, planned to release AI “companions,” though it appeared they wouldn’t be working on a smartphone. Altman and Ive discussed a device that would be aware of the user’s surroundings and life and be placed in a pocket or on a desk, with other plans for a device without a screen. The pair indicated the device wouldn’t be a new phone or something that could be worn, and they told Bloomberg it would allow consumers to connect with AI in “very new ways.” Altman suggested OpenAI’s first product wouldn’t “make the smartphone go away” and be a “totally new kind of thing.” Altman previously called Ive—who designed Apple’s iMac, the iPod, the iPhone, the iPad and the Apple Watch—the “greatest designer in the world,” writing he was “excited to try and create a new generation of AI-powered computers.” The Information reported last year that Luxshare signed a deal with OpenAI to produce a consumer AI device, which could resemble a smart speaker without a display. There is no evidence Ive is involved in the Qualcomm effort.Key BackgroundQualcomm’s stock dropped to its lowest level over the last 12 months earlier this month as the chipmaker faces supply shortages. The company issued disappointing financial guidance in February, when CEO Cristiano Amon said its weakness was “100% related to memory” as soaring demand for AI data centers cut into its memory chip supply. Memory chip prices have surged by up to 90% in some markets, and in February, the market intelligence firm International Data Corporation said it expected the global smartphone market to decline by as much as 13%.

What To Watch ForQualcomm will report second-quarter earnings after market close on Wednesday. Further ReadingForbesEverything We Know About OpenAI’s $6.5 Billion Purchase Of Jony Ive’s IoBy Ty RoushGot a tip? Share confidential information with Forbes.Editorial StandardsReprints & PermissionsLOADING VIDEO PLAYER...FORBES’ FEATURED Video