T-Mobile Unveils AI Phone with Perplexity Assistant at MWC 2025

T-Mobile and Deutsche Telekom have announced a new AI-powered smartphone at Mobile World Congress (MWC) 2025, designed to provide system-wide AI assistance. The device, dubbed the AI Phone, will feature Perplexity Assistant, Google Cloud AI, ElevenLabs, and Picsart, enabling AI-driven interactions across the entire system.

The AI Phone is expected to launch in the second half of 2025, with a price under $1,000, and will be available in 2026.

A First Look at the AI Phone

While full specifications remain unclear, reports suggest the AI Phone is a budget to midrange Android device with a boxy design, thick forehead and chin bezels, and a pink sleep/wake button. The device is built to seamlessly integrate AI tools without requiring users to switch between apps.

Unlike traditional smartphones, the AI Phone places AI at the core of the experience, making it possible to:

• Use Perplexity Assistant system-wide, even on the lock screen.

• Book flights, make reservations, shop online, and complete tasks through AI voice commands.

• Access Magenta AI features via a dedicated app, with integration from Google Cloud AI for vision-based AI analysis, ElevenLabs for converting user-uploaded content into podcasts, and Picsart for generating creative images.

AI Features and Capabilities

While the full AI experience is designed for the AI Phone, some features—such as Perplexity Assistant and Magenta AI tools—will also be available to users of other smartphones through T-Mobile’s MeinMagenta app, allowing them to access AI-powered search, voice capabilities, and creative tools without needing to upgrade their device. Magenta AI, T-Mobile’s AI assistant, will also be available as an app for Android and iOS users—but only for T-Mobile’s 300 million existing customers," said Claudia Nemat, Deutsche Telekom board member overseeing technology and innovation.

Key AI Capabilities:

• Perplexity Assistant: A system-wide AI search engine that can process queries conversationally and provide real-time responses. Unlike traditional AI assistants, Perplexity is evolving into an "action machine" capable of booking flights, making reservations, sending emails, placing phone calls, and setting smart reminders.

• Magenta AI App: A hub for AI-driven creativity and productivity tools, including Google Cloud AI, ElevenLabs (for voice AI), and Picsart (for AI-powered image generation and editing).

• Seamless AI Assistance: The phone enables hands-free AI interactions, even from the lock screen, making it easier to get things done without navigating between apps.

Additionally, some AI tools—including Perplexity’s AI search engine—will be available to other smartphone users via the MeinMagenta app.

"Perplexity is transitioning from just being an answer machine to an action machine," said CEO Aravind Srinivas at MWC 2025. "It is going to start doing things for you, not just answering questions."

Pricing and Availability

The AI Phone is expected to launch in late 2025, with a price below $1,000.

• Retail availability is projected for 2026.

• While the full AI experience is designed for the AI Phone, some features—such as Perplexity Assistant and Magenta AI tools—will also be available to users of other smartphones through T-Mobile’s MeinMagenta app, allowing them to access AI-powered search, voice capabilities, and creative tools without needing to upgrade their device.

The Bigger Picture—Telecoms, AI, and Market Competition

The launch of T-Mobile’s AI Phone reflects a larger trend in the telecom industry—one where carriers are seeking ways to compete more directly with tech giants like Apple and Google. Traditionally, these companies have dominated the smartphone ecosystem, controlling operating systems, app marketplaces, and user experiences, while telecom providers have been relegated to network services.

Deutsche Telekom’s partnership with Perplexity AI, first announced in April 2024, is part of this effort to reclaim customer relationships by integrating AI at the core of the user experience. The AI Phone was initially teased a year ago at MWC 2024, showing that despite the hype around AI, telecom companies aren’t known for moving quickly in this space.

For Perplexity, the competition extends beyond telecom. The startup is up against AI powerhouses like OpenAI and Anthropic, as well as Google’s Gemini AI, which is already embedded into Google Search. By partnering with Deutsche Telekom, Perplexity is positioning itself in the next phase of AI evolution, shifting from a reactive chatbot to a proactive digital assistant.

"These are the kinds of things that earlier you would have to do in your own way, learning how to use these different apps," said Perplexity CEO Aravind Srinivas. "All these things are going to start becoming easier so that you can focus your time and energy on problem solving… This is really the next phase where AI is going to transition 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 Challenge Ahead

Despite the potential of AI-driven smartphones, success in the highly competitive mobile market is far from guaranteed. Even major players like LG have struggled to maintain a foothold, eventually exiting the smartphone business. Whether T-Mobile and Perplexity can carve out a place in this space remains to be seen, but the move underscores the magnetic pull of AI—a force attracting both legacy telecom companies and cutting-edge startups as they seek new opportunities in an increasingly AI-driven world.

What This Means

T-Mobile and Deutsche Telekom’s AI Phone represents a shift toward AI-first smartphones, designed to make AI a core part of everyday interactions. By integrating Perplexity Assistant, Magenta AI, and other AI tools, the device aims to offer a more intuitive, hands-free experience.

However, this launch comes at a pivotal time. As telecom providers seek to compete with tech giants, and AI startups look for new growth opportunities, this phone is a test case for whether AI-driven smartphones can break into a market dominated by Apple, Google, and Samsung.

If successful, the AI Phone could set a precedent for a new category of devices, where AI is no longer just an app but the foundation of the entire user experience. But with competition from entrenched smartphone makers and AI leaders like OpenAI and Google, its impact will depend on how well it delivers a truly transformative experience.

The next phase of AI integration isn’t just about answering questions—it’s about taking action. Whether the AI Phone can deliver on this vision will determine if this is just another experiment or the beginning of a new AI-powered smartphone era.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.