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StepFun just put a price on its AI phone bet. The Chinese startup, backed by Tencent, opened pre-orders for the STEPX Neo at 3,999 yuan — roughly $560 — a day after its first sales event on October 16.
Why It Matters
The launch of StepFun's STEPX Neo at a competitive price point highlights a growing trend in the smartphone market towards integrating AI capabilities directly into the device's operating system, rather than as standalone applications. This strategy could redefine user interaction with technology, especially in a market increasingly dominated by AI-driven functionalities. Additionally, Tencent's backing signifies strong industry confidence in AI-enhanced products, potentially influencing competitors and shaping future innovations in the sector.
The STEPX Neo isn’t trying to be a slightly smarter version of what you already own. The whole pitch is that the AI agent, named Amoo, lives inside the operating system itself, not bolted on as an app you tap when you need a shortcut. StepFun made a point of saying, during the launch, that the AI era turns the smartphone into the primary product — not a vessel for other products. You tell it where you want to go, and Amoo handles what comes next. No app-switching, no manual searching. The company was pretty blunt about its view of conventional smartphone software: not capable enough for genuinely autonomous tasks.
What Step AOS 1.0 Actually Does
The phone runs Step AOS 1.0, built from scratch for AI agents. It blends Android, Linux, and real-time operating system components — an unusual combination that’s designed to let Amoo manage tasks without the friction that comes from apps operating in silos. Long-term memory, task scheduling, security controls: all baked in.
Amoo works through something called the Model Context Protocol, or MCP. It breaks tasks into small blocks and hands them off to partner services directly. No screen-reading tricks, no simulated clicks — which is how competitors like Doubao handle things. StepFun’s approach keeps platforms like Alipay and Meituan in control of their own transactions and bookings, which is probably what got more than 100 companies on board. Tencent, Ctrip, Didi, Meituan, Alipay — they’re all compatible with Amoo out of the box.
The phone also has a second MiniLED screen on the back. It shows what Amoo is doing in real-time. Useful, or a gimmick — unclear yet. But it’s there.
Amoo runs two separate memory systems. One holds user-specific data: habits, preferences, facts you’ve told it. The other tracks task execution — basically, how to get things done. Simple commands run offline on smaller models inside the phone. More complex jobs, ones that span multiple apps, go up to larger models in the cloud. It’s a pretty sensible split, and it keeps the phone functional even without a strong connection.
StepFun’s Model and the Token Plan
StepFun was founded in 2023 by Jiang Daxin, a former Microsoft VP. The company built its own large language model — Step 5 Preview — which launched in September. It runs on 600 billion parameters, with 27 billion active at any given moment, and can process up to 1 million tokens at once. There’s also an open-source version, Step 3.5 Flash, released earlier under an Apache 2.0 license.
Every STEPX Neo comes bundled with a 12-month STEPX Token Plan. That’s 100 billion tokens per month. For a year. The number is big enough that most users probably won’t come close to hitting it — but StepFun hasn’t said what happens when the year runs out. No pricing disclosed for AI services after month twelve. That’s a gap worth watching.
StepFun first showed the STEPX brand, the agent, and the operating system at a Shanghai event on July 13. No price, no sales date at that point. The October 16 event filled in the blanks.
The broader context matters here. AI-native phones are basically a new category, and the race to define what they actually mean for users is still wide open. StepFun’s bet is that deep OS integration — not a chatbot layer on top of Android — is what separates a real AI phone from a marketing exercise. Whether Amoo’s partner network of 100-plus companies gives it enough utility to back that up is something buyers will figure out fast.
And the pricing is aggressive. At $560, it’s not cheap, but it’s not flagship territory either. For a first-generation device running a brand-new operating system from a startup that didn’t exist three years ago, the company is clearly trying to move units, not just make a statement.
Step 5 Preview’s 600 billion parameters put it in serious company among large language models globally.
Frequently Asked Questions
What is the STEPX Neo’s pre-order price?
The STEPX Neo is available for pre-order at 3,999 yuan, approximately $560, following the first sales event on October 16.
Who founded StepFun and when?
StepFun was founded in 2023 by Jiang Daxin, a former Microsoft VP, and is backed by Tencent.
What is included in the STEPX Token Plan?
The 3,999-yuan price includes a 12-month STEPX Token Plan offering 100 billion tokens per month; post-year pricing has not been disclosed.
