Qualcomm, the semiconductor designer, made a significant announcement at the 2024 Mobile World Congress in Barcelona, Spain. The company unveiled its latest generation of chips and AI models for mobile devices, showcasing its commitment to advancing intelligent computing and consumer experiences. Qualcomm’s CFO and COO, Akash Palkhiwala, sat down with Yahoo Finance’s Brad Smith to discuss the company’s artificial intelligence hub and the potential use cases across various devices.
The AI hub is a central platform where developers can access a wide range of models, including generative models and simpler AI models. Palkhiwala emphasized the convenience and accessibility of this platform, as developers can easily integrate these models into their applications, test them on devices, and deploy them in application stores. With over 75 language models available on the website, Qualcomm aims to broaden the reach of its products and make it easier for developers to leverage their hardware.
Palkhiwala highlighted the growing importance of large language models, which have already demonstrated their value in data centers. He predicts that the next step will be deploying these models on edge devices such as phones, PCs, automotive systems, and IoT devices. This presents a significant opportunity for Qualcomm, as their chips will play a crucial role in facilitating these deployments and enabling developers and consumers to enjoy new and exciting use cases.
The impact of generative AI on the smartphone market is expected to be substantial. Palkhiwala noted that each new technological advancement in smartphones drives market expansion, and generative AI is no exception. Major OEMs and content companies are already exploring ways to leverage this technology, and there are numerous use cases that consumers will find intriguing. Qualcomm is enthusiastic about the potential of generative AI not only in phones but also in other edge devices they participate in.
Regarding Qualcomm’s revenue and margins, Palkhiwala mentioned the launch of their new chip, Snapdragon 8 Gen 3, earlier this year. This chip offers advanced AI capabilities to run generative AI models. As customers adopt these capabilities and launch new devices throughout the year, Qualcomm anticipates market share growth and positive financial outcomes.
In the broader context of the AI chip industry, Qualcomm sees itself at the center of the AI revolution. While AI use cases have primarily been focused on cloud computing, the transition to edge devices is imminent, and Qualcomm is playing a pivotal role in making that happen. By bringing together developers, OEMs, and content creators, Qualcomm aims to create a robust ecosystem that delivers compelling use cases for consumers.
Lastly, Palkhiwala addressed Qualcomm’s ongoing partnership with Apple. Apple has extended its agreement to use Qualcomm’s 5G modems until 2027, highlighting Qualcomm’s expertise in developing high-performance 5G chips. This partnership is expected to contribute positively to Qualcomm’s bottom line, as they continue to lead in performance and provide excellent supply to Apple.
The Mobile World Congress in Barcelona serves as a platform for companies like Qualcomm to showcase their latest innovations and set the stage for the future of technology. With their focus on AI models and chips, Qualcomm is positioning itself as a key player in advancing intelligent computing and revolutionizing consumer experiences across various devices. As the deployment of AI models on edge devices becomes more prevalent, Qualcomm’s chips will be at the forefront, enabling developers and consumers to embrace new possibilities.
