They’re not a chip manufacturer though, and modern phone processors are already fast enough to do near real time text generation and fast image generation (20 tokens/second llama 2, ~1 second for a distilled SD 1.5, on Snapdragon 8 Gen 3)

Unfortunately, the cheapest phones with that processor seem about $650, and the Rabbit R1 costs $200 and uses a MediaTek Helio P35 from late 2018.