T-Mobile parent Deutsche Telekom Developing "AI Phone"

Deutsche Telekom, the parent company of T-Mobile, is developing an “AI Phone” that would embed generative artificial intelligence (AI) systemwide as its “virtual butler.” This innovative feature would allow users to simply talk to the phone to get it to do tasks, instead of switching between apps. “This is the future of AI innovation for consumers,” Claudia Nemat, member of the board of management for technology and innovation at Deutsche Telekom, announced.

According to the company, it’s like having a “virtual butler” who “writes e-mails, starts phone calls, plays music, summarizes texts or translates them, makes calendar entries and much more. The company is developing this technology in collaboration with Perplexity, an AI startup that provides real-time answers through a conversational interface, similar to ChatGPT.

AI Interface and Functionality

The Perplexity assistant will serve as the primary AI interface on the AI Phone, similar to the way Siri runs systemwide in iPhones and Gemini being natively embedded in Google Pixel smartphones. The assistant will be readily accessible from the lock screen or by double-pressing the power button, indicating a deep integration into the device’s core functionality. According to TechCrunch, the AI Phone will be priced below $1,000. It will be unveiled later this year and start shipping in 2026, with the first markets for the AI Phone being in Europe.

Competition in the AI Smartphone Market

Deutsche Telekom is introducing the AI Phone at a time of intense competition in the AI-powered devices market, with major tech companies and telecommunications providers seeking to differentiate themselves. In January, Samsung positioned its Galaxy smartphones as “AI companions” that more deeply embed the technology into the device. Google has continued to add AI features to its Pixel smartphones, such as Gemini Live, an AI chatbot that can engage in free-flowing conversation with the user and helps with tasks.

Video, Audio and Image Capabilities

To bring additional capabilities to the AI Phone, Deutsche Telekom is partnering with Google Cloud AI, ElevenLabs and Picsart. Their services will be offered starting in the summer. Google Cloud AI adds video and audio understanding capabilities so users can do things like translate conversations in real time. ElevenLabs can convert prompts, links and documents into multi-speaker podcasts. Picsart lets users create their own avatars or transforms photos into different artistic styles.