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Deutsche Telekom & Perplexity Announce AI-Powered Smartphone Under $1K

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Barcelona, March 3, 2025 – Deutsche Telekom (DT) has partnered with AI startup Perplexity to develop an AI-powered smartphone, set to launch in 2026 for under $1,000. The device, revealed at MWC 2025, will feature built-in AI capabilities, including a new assistant app called Magenta AI, designed to handle tasks like booking flights, sending messages, and making calls.

Image Credits: T-Mobile(opens in a new window)under a license

Perplexity, a Silicon Valley AI firm valued at $9 billion, aims to transition from a search tool to an action-driven AI assistant. The phone will integrate AI solutions from Google Cloud, ElevenLabs, and Picsart.

DT has not disclosed details on hardware specifications or the operating system but confirmed that Magenta AI will also be available as an app for DT’s 300 million customers.

This move highlights the growing competition in AI-driven mobile experiences, with DT and Perplexity attempting to disrupt a market dominated by Apple and Google. However, whether they can carve out space in the highly competitive smartphone industry remains to be seen.

Stay tuned for more updates on the AI revolution in mobile technology

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