StepFun Launches $560 AI-Agent Phone With Native Agent OS

What happened: Chinese startup StepFun began shipping its STEPX Neo smartphone on October 16, 2026, priced at 3,999 yuan (~$560–597 USD). The device runs Step AOS 1.0, an operating system built from scratch around a native AI agent named "Amoo," and features on-device and cloud AI models for task execution. The phone includes a secondary MiniLED back screen for agent activity, and launches with around 100 partner integrations (Alipay, Tencent, Didi, Meituan, JD). Pre-orders opened October 13, and the price includes 12 months of a "STEPX Token Plan" (100 billion tokens/month); post-year pricing is undisclosed. StepFun, founded by ex-Microsoft VP Jiang Daxin and backed by Tencent, raised $2.5 billion pre-IPO and is preparing a Hong Kong listing.

Why it matters: StepFun's claim of the "world's first AI smartphone" is more a marketing distinction—the OS is built around the agent, unlike competitors who bolt on AI features. The generous token plan could drive early adoption, but the lack of independent reviews and undisclosed long-term pricing raise questions about sustainability and user lock-in. The launch reflects intensifying competition in the AI-native hardware space, with Chinese tech giants and startups vying for differentiation.

Source: Decrypt, South China Morning Post, Caixin Global