Topline<\/p>\n
Qualcomm 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\u2019s first hardware after CEO Sam Altman teased fully AI-powered \u201ccompanions.\u201d <\/p>\n
Sam Altman planned to develop AI \u201ccompanions\u201d after OpenAI added Apple\u2019s famed designer last year. <\/p>\n
NurPhoto via Getty ImagesKey Facts<\/p>\n
Shares 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%.<\/p>\n
Ming-Chi Kuo, an analyst at TF International Securities, said<\/a> 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.<\/p>\n Mass production of the device is expected by 2028, Kuo said, but noted \u201cspecifications and suppliers\u201d will be finalized by late 2026 or the first quarter of 2027.<\/p>\n Neither Qualcomm nor OpenAI immediately responded to Forbes\u2019 request for comment.<\/p>\n Openai\u2019s Plans For An Ai Device<\/p>\n Altman reportedly<\/a> told OpenAI employees he and Jony Ive, the famed Apple designer who joined OpenAI last year, planned to release AI \u201ccompanions,\u201d though it appeared they wouldn\u2019t be working on a smartphone. Altman and Ive discussed a device that would be aware of the user\u2019s 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\u2019t be a new phone or something that could be worn, and they told Bloomberg it would allow consumers to connect with AI in \u201cvery new ways.\u201d Altman suggested OpenAI\u2019s first product wouldn\u2019t \u201cmake the smartphone go away\u201d and be a \u201ctotally new kind of thing.\u201d Altman previously called Ive\u2014who designed Apple\u2019s iMac, the iPod, the iPhone, the iPad and the Apple Watch\u2014the \u201cgreatest designer in the world,\u201d writing<\/a> he was \u201cexcited to try and create a new generation of AI-powered computers.\u201d The Information reported<\/a> 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.<\/p>\n Key Background<\/p>\n Qualcomm\u2019s 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 \u201c100% related to memory\u201d as soaring demand for AI data centers cut into its memory chip supply. Memory chip prices have surged by up to 90<\/a>% in some markets, and in February, the market intelligence firm International Data Corporation said<\/a> it expected the global smartphone market to decline by as much as 13%. <\/p>\n What To Watch For<\/p>\n Qualcomm will report second-quarter earnings after market close on Wednesday. <\/p>\n