Deutsche Telekom’s AI-Powered Smartphone

The era of AI devices isn’t over yet; some companies are daring to innovate.

At Mobile World Congress 2025, Deutsche Telekom announced plans to launch its own AI-powered smartphone this year, transforming a concept into a real product ready for stores.

The phone features Perplexity’s AI assistant as its main co-pilot, managing tasks from booking taxis to answering complex questions without needing to switch between apps. This marks a significant shift for the telecommunications giant, which aims to position itself as “an AI company” rather than just a network provider.

> “The trusted AI companion, our AI Phone, will help you in many situations,” said Claudia Nemat, Member of the Board of Management for Technology and Innovation at Deutsche Telekom, in a press release. “Find reliable answers with sources, book restaurants or taxis, and let the AI assistant do your shopping—all without switching between apps. Intuitively, preferably by voice.”

> “This is the future of AI. The days of the confusing app jungle are over.”

Deutsche Telekom’s AI initiative goes beyond Perplexity, partnering with other major players. Google Cloud AI will enable real-time translation, allowing quick conversation translation or interpreting written text by pointing the camera. ElevenLabs will enhance voice creation, while Picsart will provide AI avatar generation for customizing profile pictures.

These features fall under the “Magenta AI” umbrella, Deutsche Telekom’s branded AI experience that works on both new hardware and existing devices.

> “We foresee a role for Deutsche Telekom in democratizing access to Generative AI technology. This is our core vision for ‘Magenta AI,’” said Jon Abrahamson, chief product & digital officer. “Magenta AI stands for amazing, useful, secure AI services. Once used, you will never give it back.”

Deutsche Telekom’s AI phone enters a challenging market where previous AI devices have not gained traction. The Rabbit R1, priced at $199, struggled to meet expectations despite hype. Similarly, the $699 Humane Ai Pin received poor reviews, leading to its acquisition by HP for $116 million, far below expected estimates.

Both devices faltered by failing to differentiate from standard smartphones with built-in AI assistants. Deutsche Telekom aims to circumvent these issues by integrating AI capabilities into a fully functional smartphone instead of a separate device.

Though specific hardware details weren’t disclosed, the initial rollout will target European markets, particularly Germany and central Europe.

For customers not wanting new hardware, Deutsche Telekom will offer select AI features through the MeinMagenta app starting this summer, including access to the latest AI models featured in the upcoming phone.

Edited by James Rubin