By Adam Clark
Qualcomm stock was surging early on Monday. The chip company was benefiting from a report that it is working with ChatGPT-developer OpenAI on plans for a smartphone.
OpenAI is collaborating with Qualcomm as well as other companies to develop processors for a smartphone, with mass production expected to start in 2028, according to Ming-Chi Kuo, an analyst for TF International Securities known for watching technology supply chains.
Qualcomm shares were up 9% in premarket trading, while Apple was falling 1.2%.
"Smartphone hardware is already highly mature, so OpenAI can work with the supply chain to develop the device. On the business model side, OpenAI may bundle subscriptions with hardware and build a new AI agent ecosystem with developers," Kuo wrote in a post on social media.
OpenAI and Qualcomm didn't immediately respond to requests for comment from Barron's early on Monday.
Last year, OpenAI announced that it was buying a start-up owned by Jony Ive, Apple's former chief design officer, for $6.4 billion. However, it hasn't announced any hardware products.
Getting another major customer to compete with Apple in the smartphone space would be a huge relief for Qualcomm. The chip company produces modem systems for iPhones, but Apple is now producing its own modems, with more advanced systems potentially on the way.
Apple has collaborated with OpenAI previously. However, the iPhone maker chose Google to power an AI upgrade for its Siri digital assistant.
Barron's owner News Corp has a content-licensing partnership with OpenAI.
Write to Adam Clark at adam.clark@barrons.com
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(END) Dow Jones Newswires
April 27, 2026 09:13 ET (13:13 GMT)
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