Perplexity and Deutsche Telekom Team Up Against Apple and Google

Deutsche Telekom unveiled plans for an AI-powered smartphone at Barcelona's MWC. The "AI Phone" emerges from a partnership with Perplexity, the startup now valued at $9 billion.
"We're becoming an AI company," declared Telekom executive Claudia Nemat confidently. She clarified one point: the company isn't developing base models but focuses on AI agents instead. The device will hit European markets in 2026 for under $1000.
Perplexity CEO Aravind Srinivas describes a fundamental shift: "Perplexity is evolving from an answer machine to an action machine." The service won't just answer questions but actively book flights, make reservations, and send emails. It only lacks the ability to brew morning coffee.
The partnership follows a clear strategy. Telecom providers have battled tech giants like Apple and Google for years. These companies pushed telecoms out of the lucrative app business with their operating systems. Previous smartphone attempts like the "Firephone" with Mozilla ended up in the digital graveyard.
Hardware details remain scarce. Neither manufacturer nor operating system was revealed. Concept images suggest an Android variant. They promise "AI on the lock screen" – perfect for those wanting philosophical debates with their entryway.
Why this matters:
- Telecom companies desperately seek relevance in the smartphone ecosystem. AI serves as their trojan horse for re-entry.
- This marks the shift from reactive to proactive AI. Devices will act independently rather than just respond – whether we actually want this remains an open question.
Read on, my dear:
- Deutsche Telekom: From the vision to “our AI Phone”: the next chapter