At this year's Mobile World Congress (MWC) in Barcelona, Deutsche Telekom (DT) announced it will launch an AI-powered phone in collaboration with companies like Perplexity and Picsart. The phone is slated for a 2026 release, priced under $1000, initially targeting the European market.
Claudia Nemat, DT board member and head of technology and innovation, stated at the launch, "We are becoming an AI company." However, she clarified that DT's goal isn't to build large language models, but rather to develop AI agents to enhance user experience.
Perplexity, an AI search engine company and key partner in this collaboration, is accelerating its transformation into an AI agent. Aravind Srinivas, co-founder and CEO of Perplexity, said Perplexity's future extends beyond answering questions to include proactive actions like booking flights, sending emails, and making calls.
Reportedly valued at approximately $9 billion, the Silicon Valley startup is leveraging partnerships with telecom operators to enter the mobile AI services market. In January, Perplexity launched its Android assistant, potentially forming a core technological foundation for the AI phone.
Telecom operators have long faced the dominance of Apple and Google in the smartphone market, struggling to gain a foothold in operating systems and app ecosystems. DT's collaboration with Perplexity on an AI phone aims to leverage AI to reshape user experience and strengthen the telecom company's influence in the mobile market.
While Nemat didn't disclose specific device specifications or the operating system, the concept image suggests it might be based on Android. DT stated the AI phone will integrate AI technologies from Google Cloud, ElevenLabs, and Picsart, and feature the Magenta AI assistant, serving DT's 300 million users.
In a fiercely competitive and solidified smartphone market, whether DT and Perplexity's AI phone can disrupt the existing ecosystem remains to be seen. However, this move demonstrates that even traditional telecom operators are actively embracing the AI wave, seeking to reshape the market through technological innovation.