"Telekom & Perplexity Team Up for AI-Powered Smartphone Challenge to Apple's Dominance"

Deutsche Telekom and Perplexity have joined forces to launch an AI-powered smartphone, aiming to challenge Apple's dominance in the market. The new device, set to hit store shelves this year, is a significant shift for the telecom giant, which is now positioning itself as an AI company rather than just a network provider.

The AI-powered smartphone features Perplexity's AI assistant as its primary "co-pilot," promising to handle various tasks such as booking taxis and answering complex questions without users needing to navigate between apps. The device reflects a significant shift for Deutsche Telekom, which now wants to position itself as "an AI company" rather than merely a network provider.

Claudia Nemat, Member of the Board of Management for Technology and Innovation at Deutsche Telekom, said in a press release, "The trusted AI companion, our AI Phone, will help you in many situations. Find reliable answers with reference to the source, conveniently book a restaurant or taxi, let an AI assistant do your shopping—all without having to switch between apps. Intuitively and preferably by voice. This is the future of AI. The days of the confusing app jungle are over."

Deutsche Telekom's AI push extends beyond Perplexity to include collaborations with other major players. google Cloud AI will provide real-time translation capabilities, allowing users to translate conversations quickly or interpret written text simply by pointing the camera at signs or menus. ElevenLabs will enable quick voice creation, with Picsart offering AI avatar generation for customizing profile pictures.

All these features fall under the "Magenta AI" umbrella, Deutsche Telekom's branded AI experience designed to work across both new hardware and existing devices. Jon Abrahamson, chief product & digital officer at Deutsche Telekom, said, "We foresee a role for Deutsche Telekom in democratizing access to the best of Generative AI technology for our customers. This is our core vision for 'Magenta AI.' Magenta AI stands for amazing, useful, secure AI services. Once used, you will never give it back."

The company's AI phone project enters a market where previous dedicated AI devices have struggled to gain traction. The Rabbit R1, a $199 handheld AI companion debuted earlier this year but failed to live up to its promises despite significant pre-launch hype. Similarly, the Humane Ai Pin, priced at $699, received bad reviews upon release, and its company ended up being acquired by