Deutsche Telekom (DTEGY), the German telecommunication giant, and its U.S. subsidiary, T-Mobile (TMUS), are stirring up the smartphone industry

It was inevitable that this year at MWC in Barcelona, at least one carrier would announce a major effort at building a smartphone with a top AI company.

Deutsche Telekom is building a new Perplexity chatbot-powered “AI Phone,” the companies announced at Mobile World Congress (MWC) in Barcelona today. The new device will be revealed later this year and run “Magenta AI,” which gives users access to Perplexity Assistant, Google Cloud AI, ElevenLabs, Picsart, and a suite of AI tools.

Deutsche Telekom is a giant in the telecom industry. It’s the parent company of T-Mobile, to give you an idea. They also have a big presence in Europe. During the MWC 2025 show

The AI Phone, featuring the Perplexity assistant, aims to enhance user experience by serving as a digital companion capable of handling various tasks.

Deutsche Telekom plans to release an app-free phone that relies on an AI assistant to run tasks like ordering a taxi or reserving a table at your favorite retaurant.

Claudia Nemat, Board Member for Technology and Innovation, presented the AI Phone with the digital assistant from Perplexity. Image: Deutsche Telekom eWEEK content and product recommendations are editorially independent.

Deutsche Telekom says that its upcoming AI phone will be able to answer questions, book taxis, reserve tables, translate in real time, pen emails, make phone calls, play music, summarize text messages,