Qualcomm goes all-in on generative AI to challenge NVIDIA's current position in AI

According to the report, as a result of losing the title of the world's largest chip company to Nvidia, as well as with thepomegranateThe uncertainty of the company's cooperation todayQualcommAlso starting to power generativeartificial intelligence (AI)Technology. Qualcomm's technology has permeated almost all smartphones. In the 1980s, it pioneered the ability to connect wirelessly until it evolved into today's 5G modems (Modems). Qualcomm charges royalties for every device that communicates using its patented core technology. Today, Qualcomm is working on a new way of using generative artificial intelligence (AI) way.

Until last month, Qualcomm was the world's largest "no plant" chip company. But thanks to the artificial intelligence boom, NVIDIA's revenue doubled in the most recent quarter, and overtook Qualcomm to sit at the top.

NVIDIA's success is due to the fact that people are interested in theChatGPTand other generative AI models are sought after, which are trained on NVIDIA's graphics processors (GPUs). That's why it's no surprise that Qualcomm is positioning itself as a key player in the AI space. Today, Qualcomm announced new in-vehicle generative AI capabilities and a new partnership with Amazon cloud service AWS.

Until now, big language models have relied on massive amounts of data on the cloud to generate text and images. But Qualcomm CEO Cristiano Amon thinks generative AI will be in high demand outside the cloud, too.

In an interview in June this year, Amon said, "For every word generated by AI, there is a lot of computation that needs to be run through a data center. I think we have a very unique ability to run these models locally. Not only can we improve performance, but we can also significantly reduce costs."

Another reason driving Qualcomm's quest to diversify could be Apple. Apple is one of Qualcomm's biggest customers, but there is uncertainty about the future of that relationship, and Amon has been outspoken about it.

Apple will produce its own 5G Modem chip in 2024, Amon said in February this year. This means that Apple's upcoming release next week ofiPhone15, which could potentially be the last iPhone model equipped with Qualcomm's 5G Modem chip.

Qualcomm says its semiconductor business is growing, while the licensing business is a smaller percentage of revenue. But the question is whether its chip business can continue to grow without Apple. And, besides Apple, there are other manufacturers developing their own chips.

Meanwhile, smartphones are facing an industry-wide downturn, with shipments expected to fall to a 10-year low. Because of this, Qualcomm has shifted much of its focus to just chips. The first of these is automotive, which Amon says is the brightest part of Qualcomm's differentiation strategy.

In recent years, Qualcomm has begun selling a suite of hardware chips, sensors, and software packages, dubbed the Snapdragon Digital Chassis, to automakers like GM, Hyundai, and Volvo. Now Qualcomm is hoping to capitalize on the generative AI boom by convincing automakers to buy more chips and build new scenarios around them. Intelligent assistants, for example, can help drivers navigate cities, make reservations, and perform other everyday computing tasks.

It's going to take time, but it bodes well for the future," said Daniel Newman, CEO of research firm Futurum Group. Qualcomm has really created more predictability in terms of revenue. Today, more and more of the world's largest automakers are choosing Qualcomm's technology."

Given NVIDIA's series of incredible performances since ChatGPT came out last November, it's no surprise that Qualcomm is now heavily into AI. In fact, AI is nothing new to Qualcomm. Qualcomm has been working on AI for about a decade, according to Amon.

May of this year.Microsoft corporationAnnouncing plans to run offline AI models on Qualcomm Snapdragon processors In July, Meta announced that its big language model, Llama 2, will run on Qualcomm chip-based phones and PCs in 2024.

Newman said, "Qualcomm's biggest opportunity is to figure out what these AI applications are, whether it's relevant to AR, whether it's relevant to smart cars, whether it's relevant to next-generation gaming, whether it's relevant to productivity tools and apps, and whether it can install its chipsets into those devices to profit from them." .

As for what further moves and plans Qualcomm will have in AI in the future, we will also keep an eye on it.