China Unveils 'Android and iPhone Killer', Showcases AI Agentic Smartphone Capabilities
Chinese artificial intelligence startup StepFun has introduced a device it claims is the world’s first agentic AI smartphone, capable of performing tasks independently without requiring users to open individual applications. The launch took place at an event in Shanghai on Monday. Backed by Tencent Holdings, StepFun unveiled the StepX Neo, a smartphone running on Step AOS, an operating system specifically designed for AI agents. The company also introduced StepX, which it claims is the world’s first AI terminal brand built natively based on a large language model. Unlike conventional smartphones, the StepX Neo is designed with AI at its core. According to StepFun, the device can understand user requests, coordinate multiple services, and complete complex tasks automatically. The handset features a personal AI assistant named Amoo, which is deeply integrated into the Step AOS operating system. StepFun also announced integrations with several of China’s largest digital platforms, including Alipay for payments, Trip.com for travel bookings, Didi Chuxing for ride-hailing, and Meituan for on-demand services. These integrations allow Amoo to execute cross-platform activities without user intervention. The launch highlights intensifying global competition in the AI industry, where companies are racing to dominate the entire ecosystem, from large language models to operating systems and hardware. In the United States, this rivalry has sparked legal disputes, with Apple recently suing OpenAI, alleging it recruited former and prospective employees to obtain trade secrets related to unreleased Apple products. OpenAI has also previously announced a collaboration with former Apple design chief Jony Ive to develop dedicated hardware for ChatGPT. Amid the battle among US tech giants, StepFun aims to prove that the future of mobile software will be led by a standalone AI ecosystem. Founder and CEO Yin Qi stated that AI agents require an operating system built from the ground up, rather than simply adding AI features to existing mobile platforms. He noted that current smartphone operating systems were never designed to perform tasks autonomously. Yin also said StepFun will not rely on conventional revenue sources such as hardware sales, pre-installed app fees, or advertising. The company has yet to disclose a commercial launch schedule or pricing for the StepX Neo, and is instead exploring new monetisation models for AI-native devices. StepFun was founded in 2023 by former Microsoft Research Asia executive Jiang Daxin. The company has received funding from Tencent Holdings and hardware manufacturers such as ZTE. In May, StepFun raised nearly US$2.5 billion in pre-IPO funding, giving the AI startup a valuation of approximately US$10 billion.