'Not building new hardware device': Aravind Srinivas as German telecom firm announces Perplexity-assisted 'AI Phone'

German telecommunications company Deutsche Telekom (DT) has announced an "AI Phone" in partnership with Perplexity, Picsart, and others. This innovative smartphone will feature a new AI assistant app called "Magenta AI", making it a prominent addition in the tech industry. The phone is expected to launch in the second half of this year, with sales commencing in 2026, priced under $1,000, specifically targeting the European market. 

Perplexity will serve as the default assistant on the AI Phone, integrating AI-powered search and assistance directly into the device. This development aims to make information more accessible for users. Claudia Nemat, a board member at DT, emphasised the company's evolution into an AI-focused entity. She noted, "We are becoming an AI company" but clarified that "we do the AI agents," rather than foundational large language models. 

Perplexity, valued at approximately $9 billion, is pivotal to the phone's development. The startup, initially known for its generative AI search engine, is making strides in creating "proactive" products. "Perplexity is transitioning from just being an answer machine to an action machine," said Aravind Srinivas, Perplexity’s co-founder, highlighting the assistant's capability to perform tasks such as booking flights, sending emails, and setting reminders. 

The Perplexity Assistant will be a native Android OS integration, designed to personalise user experiences. "Just to be clear: Perplexity is not building a 'new' hardware device," clarified Srinivas on X later. The focus is on embedding the assistant within DT's AI Phone, allowing it to answer questions and take user-specific actions. 

This collaboration marks Perplexity’s first major partnership with a telecom carrier to develop an AI interface for a smartphone. Previously, Perplexity launched an Android assistant, which may serve as a foundation for the upcoming AI Phone. Details regarding the phone’s hardware specifications remain undisclosed. 

Claudia Nemat did not provide specifics about the device’s hardware or the operating system it will utilise. However, the focus on AI agents rather than language models suggests a distinct strategic approach for the company. This development aligns with the broader industry trend towards integrating AI into everyday devices. 

The AI Phone represents a significant step for Deutsche Telekom as it shifts its focus towards AI-driven solutions. With the European market as its initial target, the phone is poised to offer enhanced AI capabilities at a competitive price point, making it an intriguing prospect for tech enthusiasts.