StepStar Unveils Next-Gen AI Agent Terminal, Sources Say It Includes Both Software and Phone Hardware

StepStar, the Chinese AI startup known for its Step series of multimodal large language models, has officially announced a next-generation AI agent terminal, signaling its entry into the AI hardware arena.

According to sources familiar with the matter, the project encompasses not only an AI agent software system but also custom smartphone hardware. This aligns with a broader industry trend in China where AI model companies are increasingly pursuing integrated "model + hardware" strategies.

StepStar built its reputation on multimodal capabilities spanning image generation, video understanding, and cross-modal reasoning. The move into AI agent terminals represents a strategic pivot from pure model capability toward building application-layer ecosystems and hardware touchpoints.

The timing is notable. The AI agent terminal space is rapidly heating up in 2026. Nubia recently confirmed plans to launch what it calls the world's first AI agent phone, and multiple smartphone makers are exploring how to embed agentic AI into mobile devices. StepStar's entry adds another significant player to this emerging category.

What differentiates an AI agent terminal from a conventional smartphone is the ability to proactively understand user intent and autonomously execute multi-step tasks, rather than passively waiting for user commands. This requires deep integration of AI models into the operating system layer — a significant engineering challenge.

StepStar has not yet disclosed specific launch timelines, product form factors, or hardware partners. However, this official announcement marks a shift from internal R&D to public rollout, with more details expected in the near future.

For StepStar, the AI agent terminal represents a critical commercialization opportunity. With the LLM API market becoming increasingly crowded and margin-compressed, owning a hardware endpoint that directly reaches consumers offers a compelling path to building a sustainable service ecosystem.