Chinese Startup StepFun Launches AI-Centric Smartphone Operating Independently of Internet

Chinese startup StepFun unveiled the StepX Neo smartphone this week in Shanghai, claiming it as the world's first device designed entirely around artificial intelligence. Unlike existing smartphones that add AI features on traditional operating systems, the StepX Neo is built on a new architecture placing AI at its core. It runs on a proprietary operating system called Step AOS, which integrates Android, Linux, and real-time operating systems. Central to the system is an AI agent named Amoo, capable of performing key tasks without internet connectivity, distinguishing it from most current AI solutions.

The StepX Neo has passed China's L3 smart device intelligence standard, the highest level currently available, making it the only smartphone certified at this tier. Its design includes a dual-camera setup and a secondary rear display that provides visual feedback during AI agent activity. Pricing starts at approximately 999 yuan (about 140 USD) and goes up to 1,599 yuan for the premium model with 12GB RAM and 512GB storage.

StepFun, founded in 2023 by former Microsoft employees, is positioning itself at the forefront of the global AI smartphone race, ahead of American companies like OpenAI, which is not expected to release a similar device before 2028. The competitive landscape is also heating up legally, with Apple recently suing OpenAI over alleged hardware development trade secret theft. StepFun is preparing for a Hong Kong stock exchange listing, targeting a valuation of up to 12 billion USD. Its AI models are already integrated into over 40 million smartphones through partnerships, but the StepX Neo marks its direct entry into hardware, allowing full control over user experience and AI service integration. If successful, the device could transform smartphone interaction from reactive command-based use to proactive, autonomous AI platforms.