Deutsche Telekom & Perplexity AI Phone: Price & Details

Deutsche Telekom and Perplexity Collaborate on New "AI Phone"

The convergence of mobile carriers and leading AI firms was anticipated at this year’s Mobile World Congress in Barcelona. Deutsche Telekom (DT) has announced the development of an “AI Phone,” a budget-friendly handset created in partnership with Perplexity, Picsart, and other technology innovators.

Launch and Market Focus

DT intends to officially present the device during the latter half of the current year, with sales projected to commence in 2026. The initial target market will be consumers within Europe, as confirmed by a company spokesperson to TechCrunch.

“We are evolving into an AI-focused company,” stated Claudia Nemat, a DT board member responsible for technology and innovation, during a press briefing. While the company isn’t focused on building fundamental large language models, she emphasized their commitment to developing “AI agents.”

Perplexity's Role and Strategic Shift

Perplexity, the Silicon Valley startup currently valued around $9 billion, is highlighted as a crucial contributor to the phone’s development. This signifies the company’s progression from a generative AI search engine towards creating more “proactive” functionalities.

Aravind Srinivas, Perplexity’s co-founder and CEO, explained that the company is transitioning “from just being an answer machine to an action machine.” He detailed the phone’s capabilities, including booking flights, making reservations, sending communications, and setting intelligent reminders.

This collaboration marks Perplexity’s first carrier partnership for developing an AI interface for a smartphone, building upon their existing Android assistant launched in January.

Telecoms Seeking Competitive Advantage

This initiative reflects a broader trend within the telecommunications industry, where carriers are actively seeking ways to enhance their competitiveness against major technology companies.

Specifically, they aim to challenge the dominance of Apple and Google, whose operating systems and smartphones often bypass telecom companies in revenue generation and customer relationship management. Previous attempts at carrier-led phone development, such as the Firephone, have not yielded significant success.

Development Timeline and Hardware Details

Deutsche Telekom and Perplexity have been collaborating since establishing a partnership in April 2024. The concept of an “AI Phone” was initially discussed at last year’s Mobile World Congress event.

Details regarding the phone’s hardware specifications and operating system remain undisclosed, though renderings suggest a customized version of Android. DT has indicated that these details will be revealed in the second half of the year.

The phone will feature deeply integrated AI capabilities, powered by Perplexity, offering “AI on your lock screen,” according to Nemat.

Additional AI Integrations and App Availability

DT also announced the inclusion of AI services from Google Cloud, ElevenLabs, and Picsart.

“Magenta AI,” an app-based version of DT’s AI assistant, will be available for installation on Android and iOS devices for the company’s 300 million customers.

Strategic Implications for Both Companies

The “AI Phone” represents DT’s latest effort to strengthen its consumer engagement through a dedicated hardware offering, alongside the app for users who do not purchase the device.

For Perplexity, this partnership provides a point of differentiation in a competitive landscape dominated by OpenAI, Anthropic, and Google. It allows the company to explore “action” services and expand beyond its core search capabilities.

The Future of AI-Powered Smartphones

Srinivas emphasized that AI is evolving “from being just reactive and having you input prompts into something that’s just natively there on your phone, always listening to you and being able to proactively assist you.”

The success of DT and Perplexity’s venture remains uncertain, given the challenges of the smartphone market and the failures of previous attempts by established companies like LG. However, it underscores the significant allure of AI and its potential to reshape the mobile experience.

This collaboration highlights how even established companies are viewing AI as a potential solution, and how innovative startups are seeking sustainable competitive advantages.