Deutsche Telekom, Perplexity Team Up on AI Phone to Challenge Apple

The era of AI devices isn’t over yet—there are still some companies who are daring to try new things.

Yesterday at Mobile World Congress 2025, Deutsche Telekom unveiled plans to release its own AI-powered smartphone, turning what was once a concept into a tangible product ready to hit store shelves this year.

The phone features Perplexity’s AI assistant as its primary “co-pilot,” promising to handle everything from booking taxis to answering complex questions without users needing to navigate between apps. The device reflects a significant shift for the telecom giant, which now wants to position itself as “an AI company” rather than merely a network provider.

“The trusted AI companion, our AI Phone, will help you in many situations,” Claudia Nemat, Member of the Board of Management for Technology and Innovation at Deutsche Telekom, said in a press release. “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 quicklyor 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.

“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,'” said Jon Abrahamson, chief product & digital officer at Deutsche Telekom. “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 HP for $116 million—a lot less than the expected $1 Billion.

Both devices ultimately struggled to differentiate themselves from what standard smartphones with built-in AI assistants could already do. Deutsche Telekom aims to avoid this pitfall by deeply integrating AI capabilities into a fully functional smartphone rather than creating a separate companion device.

Deutsche Telekom didn’t reveal specific hardware details but the phone . The initial rollout will target European markets where Deutsche Telekom has a strong presence, particularly in Germany and other central European countries.

For Deutsche Telekom customers who don’t want to purchase new hardware, the company will offer selected AI functions through the MeinMagenta app starting this summer, including access to some of the latest AI models that will be available in its upcoming phone.

Edited by James Rubin