Finally, an AI phone that’s smart and cheap—two things that don’t always go together.

Deutsche Telekom (DT) is making an AI Phone with Perplexity, Picsart, and others—aiming for a budget-friendly price under $1K.

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Set to launch in 2026, the phone will feature Magenta AI, DT’s own assistant, and deep integration with Perplexity’s AI tech.

Perplexity is evolving beyond AI search—CEO Aravind Srinivas says it’s shifting from answering questions to taking action (think booking flights, sending emails, making calls).

Telcos have tried (and failed) to compete with Apple and Google before—remember Mozilla’s Firephone? Exactly.

DT teased this phone a year ago, but details like OS and manufacturer are still a mystery (though it looks Android-based).

What we do know: AI will be front and center, with Perplexity’s tech on the lock screen and integrations from Google Cloud, ElevenLabs, and Picsart.

And if you don’t want a new phone, DT’s Magenta AI assistant will be available as an app—if you’re one of DT’s 300 million customers.

Will this AI phone shake up the market, or just be another niche experiment? Breaking into smartphones is brutal (just ask LG), but with AI being the buzzword of 2025, everyone’s racing to stake their claim.