Deutsche Telekom (DT) is taking a step into AI smartphones. At MWC 2025 in Barcelona, DT announced a partnership with Perplexity to create an “AI Phone.” This affordable device will launch in 2026, priced below $1,000. It will first hit the European market.
A New Era of AI-Powered Smartphones
DT’s AI Phone will integrate advanced AI features, making daily tasks easier. The company is working closely with Perplexity, Picsart, and others to develop this cutting-edge device.
Claudia Nemat, DT’s board member for tech and innovation, emphasized their shift. “We are becoming an AI company,” she said. While DT isn’t building large language models, it is focusing on AI agents.
Perplexity’s Key Role in the AI Revolution
Perplexity, a Silicon Valley startup valued at around $9 billion, is at the heart of this project. Known for its AI-powered search engine, Perplexity is now evolving beyond just providing answers.
“Perplexity is transitioning from just being an answer machine to an action machine,” said Aravind Srinivas, its co-founder and CEO. He explained that the AI would do more than answer questions. It will book flights, make reservations, send emails and messages, place phone calls, and set reminders.
This isn’t Perplexity’s first step into AI assistants. In January, it launched an Android assistant. That experience likely helped shape the AI Phone’s development.
Why This Matters for the Telecom Industry
For years, telecom companies have struggled to compete with tech giants like Apple and Google. These companies dominate smartphone operating systems and customer relationships. DT’s AI Phone is an attempt to regain some control.
In the past, telecoms tried similar moves. Mozilla collaborated on a carrier-first phone. Amazon launched the Fire Phone, but it failed to gain traction. Facebook also attempted deeper integration into mobile devices. However, Meta has since shifted focus.
DT and Perplexity have worked together since April 2024. DT first mentioned the AI Phone concept at last year’s MWC. Now, their vision is becoming a reality.
What We Know About the AI Phone
DT has not revealed many technical details yet. It has not disclosed the manufacturer or operating system, though concept images suggest it may run on a modified version of Android. More details will emerge in the second half of 2025.
One thing is clear: AI will be at the core. Perplexity is designing the experience to bring AI to the lock screen. “So that you can experience the full Monty,” Nemat said.
The phone will feature AI from Google Cloud, ElevenLabs, and Picsart. It will also include Magenta AI, DT’s AI assistant. This assistant will be available as an app for Android and iOS but only for DT’s 300 million customers.
