During the ongoing MWC Barcelona 2025 conference, T-Mobile‘s parent company Deutsche Telekom (DT) revealed that it has roped in AI company Perplexity to make the AI Phone, as first reported by Tech Crunch.
The company aims to reveal the device in the second half of the year. The plan builds on the concept phone shown off last year. It’s expected to go on sale in 2026 and will cost less than $1,000. It will initially only be available in Europe.
The device’s main draw is going to be the Perplexity assistant, a mobile assistant announced earlier this year. DT says it will be able to do a slew of tasks for you, such as reserving a table and translating in real-time. It will evolve over time and act as a virtual butler of sorts, writing emails and making calendar entries for you.
The AI Phone will also contain AI software from Google, ElevenLabs, and Picsart.
Our real-world AI Phone and ‘Magenta AI’ bring together cutting-edge technology and everyday convenience. The trusted AI companion, our AI Phone, will help you in many situations: find reliable answers with reference to the source. Conveniently book a restaurant or taxi. Let an AI assistant do your shopping. All without having to switch between apps. Intuitively and preferably by voice. This is the future of AI innovation for consumers. The days of the confusing app jungle are over.
Claudia Nemat, Member of the Board of Management for Technology and Innovation at Deutsche Telekom, March 2025
What will give the AI Phone an edge, in an age where every new phone comes armed with AI tools, is that it will do everything intuitively. You won’t have to worry about switching apps to do different tasks. Everything will be voice-operated, or that’s the vision at least.
Customers who are not interested in the AI phone will still be able to access select AI solutions through DT’s Magenta AI services which will be built into its MeinMagenta app.
Magenta AI’ stands for amazing, useful, secure AI services. Once used, you will never give it back
Jon Abrahamson, Chief Product & Digital Officer at Deutsche Telekom, March 2025
The smartphone market is extremely tricky and AI isn’t necessarily driving up sales like companies hope it would. Thus, it will be interesting to see if there will be any takers for the AI Phone and whether it will ever make it to the US.