The year 2025 has witnessed a surge in smartphone manufacturers emphasizing the integration of artificial intelligence. While Google’s Gemini on Pixel phones has taken center stage, dedicated AI companies haven’t made significant strides in hardware. This landscape is poised for a shift. T-Mobile’s parent company, Deutsche Telekom, has announced its “AI Phone,” developed in collaboration with Perplexity AI.
Perplexity, backed by investors like Nvidia and Jeff Bezos, will provide its AI assistant as a core feature of the new device. Mirroring Google’s Gemini integration on Pixel phones or Siri on iPhones, Perplexity will be accessible system-wide, including from the lock screen.
Tweet from Perplexity AI announcing the partnership with Deutsche Telekom for the AI Phone.
Enhanced AI Capabilities: Beyond Perplexity
Beyond Perplexity, the AI Phone will also integrate Google Cloud AI, Picsart, and ElevenLabs, accessible through a dedicated Magenta AI app. Google Cloud will offer vision-based AI analysis, ElevenLabs will enable podcast creation from user content, and Picsart will facilitate image generation.
Perplexity’s Core Functionality: Voice Interaction, Translations, and Information Retrieval
Perplexity’s integration offers familiar functionalities like voice interaction, translations, and answering queries using internet-based information. It also promises some agentic capabilities. According to Deutsche Telekom, “The AI assistant can also do shopping and write emails conveniently and without having to switch between apps.”
Front view of the AI phone with Perplexity integration.
Agentic Capabilities: A New Frontier in Mobile AI
How the AI agent will execute tasks remains unclear, but there are existing examples. OpenAI’s Operator can perform tasks like booking tickets and ordering food, while Google’s Gemini utilizes extensions for cross-platform functionality.
Launch and Pricing: Targeting the Sub-$1000 Market
Deutsche Telekom plans to officially launch the Perplexity-powered AI phone in the second half of 2025. Reports suggest a price point under $1000, with availability expected sometime in 2026. This move signifies a significant step towards integrating advanced AI capabilities into mainstream smartphones, potentially reshaping the mobile landscape.
