Company Executive Discusses AI Hardware Shift From Smartphones to Wearables

A semiconductor company executive said the firm is working with nearly all major artificial intelligence developers on secret device projects that could replace the smartphone as the center of digital life. The executive declined to provide details on the projects but confirmed collaboration with OpenAI, Meta and other unnamed AI companies during an interview recorded at the company's San Diego headquarters.

The devices would take the form of items people wear such as glasses, jewelry, pins and pendants rather than objects that are held. The executive described a future in which an autonomous agent serves as the hub of digital activity by integrating inputs from multiple wearable sensors.

This agent would understand what users say, hear and see to perform tasks without direct commands.

The executive outlined what the company calls an "ecosystem of you" built around glasses with forward-facing cameras, earbuds that capture clear audio, and an agent that operates across those devices. The executive said this year will see the introduction of such agents that gain autonomy over routine activities.

Use cases include an agent automatically paying a restaurant bill when a user looks at it, comparing prices on products, or calling a doctor's office to reschedule an appointment. The executive expressed confidence that society will adapt to these systems despite initial concerns about ceding control to autonomous technology.

An analyst reported in late April that the semiconductor company and another chip designer were jointly developing a custom processor for an OpenAI smartphone to be manufactured by a third firm with mass production targeted for 2028. The report projected annual shipments of 300 million to 400 million units.

The company's shares rose as much as 13 percent after that report. A subsequent analyst note dated May 5 indicated the smartphone project might proceed with the other chip designer alone and reach production in early 2027. The executive's comments focused on wearable hardware rather than smartphones.

The executive said the company aims to supply the underlying silicon for artificial intelligence's expansion into consumer devices regardless of outcomes on any single project. The executive pointed to an existing example from a Chinese technology company that released a handset last December featuring an AI agent capable of navigating apps, booking tickets and making payments.

Competing services moved quickly to limit the agent's access to their platforms. The executive noted that the Chinese company is now developing a second-generation device scheduled for the second quarter of 2026. The executive added that the control point of the industry is shifting away from operating systems and app stores.

The executive acknowledged potential drawbacks of the new technology but argued that its overall effect would mirror the positive impacts of earlier innovations such as the internet and the smartphone by connecting people and expanding access to information.