Elliptic Labs expands AI sensor deal with top smartphone OEM
Elliptic Labs has signed a contract expansion with an existing Top-5 global smartphone manufacturer, strengthening its position in high-volume handset programs. The new license agreement is expected to cover 20 smartphone models or more, with launches planned across 2026 and into 2027.
This deal is a clear signal that AI-based, software-only sensing is becoming a standard design choice rather than a niche innovation. It also illustrates how smartphone OEMs are increasingly using AI not just for user features, but to rethink device architecture, cost structures and supply-chain risk.
AI moves from features to fundamentals
The expanded agreement broadens the manufacturer’s use of Elliptic Labs’ AI Virtual Proximity Sensor INNER BEAUTY, a software-only solution that replaces traditional proximity sensing hardware. Proximity detection is a core smartphone function, used to turn off the display and disable touch input when a phone is held to the ear during a call, preventing accidental inputs and reducing power consumption.
Instead of relying on a dedicated physical sensor, Elliptic Labs’ approach uses embedded AI software to deliver robust proximity detection across different user environments. By eliminating the hardware component, OEMs can simplify phone design, reduce the number of physical parts, and gain more flexibility in industrial design. Just as importantly, removing a discrete sensor helps reduce bill-of-materials cost and avoids potential sourcing constraints — a persistent concern in global electronics manufacturing.
The company frames AI Virtual Smart Sensors as a practical application of AI in device engineering, where software can outperform legacy hardware while scaling efficiently across large product portfolios.
Long-term confidence and predictable revenue
The agreement includes a guaranteed minimum license fee per model, providing Elliptic Labs with a more predictable revenue stream as the covered smartphones move toward mass production. Elliptic Labs has not disclosed the customer name but confirmed that an existing Top-5 global smartphone manufacturer uses the technology, showing validation in earlier product generations.
“This agreement reflects long-term confidence in our technology and our ability to deliver consistently in high-volume smartphone programs,” said Ola Sandstad, CEO of Elliptic Labs. “The shift toward AI in devices is real, but it needs to be dependable. Our embedded software-defined sensors are mature, they work in all user environments, and they help customers improve their phone design — model after model.”
As smartphone vendors continue to streamline designs and push more functionality into software, virtual sensors are likely to see broader adoption. For suppliers like Elliptic Labs, the move away from hardware toward AI-defined sensing opens the door to deeper, longer-term engagements tied directly to OEM product roadmaps rather than individual components.
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