Here's the latest and videos record search, driving others to chase this rally, among them quoll Com, the company announcing a series of advancements as it works to integrate AI into computers and smartphones through its processors. Christiana AmAm, CEO of Qualcom, joined us now from the Mobile World Congress in Barcelona. Christiana wanted for to catch up to you once again, sir, for the second time in twenty twenty four.
We appreciate your time, sir. I just want to talk about where we are now and where you think this is going. Where we are now, the focus seems to be on large language models, big data centers and n video. Talk to me about the next phase of this and ultimately where you and the team fits in.
Very good. Look, we're talking to all of you.
Yes, a lot of excitement here in Mobile Congress, a lot of new phones being launched with jen Ai. And I think the answer to your question is we're in the very beginning of the cycle. But like everything in computing, you saw a lot of things starts in the data center, starts into the cloud and then go to the distributed devices.
And I think what we have seen how happening in the cloud for the past couple of years and accelerating right now, we're just starting to see the beginning of that happening.
The devices a lot of new use cases.
The JENNYI is developing on phones, on PCs, on cars, on industrial devices, and alongside the cloud. The use cases are a little bit different, and it could create hopefully a new cycle that people want to buy an AIPC an AI smartphone, and I think that's going to be good for the industry.
Christiana, can you describe what the use case might be. Are we still in the process of discovery. Are we in a position where we're sitting here thinking we know this can be big, we just don't know what it is.
Yes, No, this is good.
You know what is interesting is you're starting to see some use cases now being available commercially. Some of the devices they get launch. You see things like, for example, live translation. You can call somebody and you speak in English, they hear in a different language, they speak a different languag, you hear back in English, and you see those Sours and Eguage models doing translation in real time. Some interesting thing happening on Android with Circle to Search. I was
changing photography and those some of the consumer applications. There's a lot of other implications for productivity as well.
One of the most interesting thing and it shows the transformation of our company.
Every year we'll come to Mobile Congress and we talk about a new cellular modem, and yes we did that.
I think we announced the most advanced five G modem. But the biggest announcement from welcome.
As the show was a AI hub, and that give an idea of how fast this is evolving. We get seventy five seventy five models. We have models from open Ai, we have models from Metal, we have models and open Stars where.
There's an audio video image. Those are available for developers. They can start writing an application.
Integrate the model to the app and push to the app store of Android and starting commercializing those things with all of this snaptare and devices. And that's showed that we're the beginning of something very interesting here.
You mentioned Android, you didn't mention Apple, and I'm curious to just announce that they're getting out of electric vehicles and they're going to invest more in artificial intelligence. Well, app will be a competitor or a client in your pathway to really adopt a greater AI focus. In your chips.
Look, we have a relationship of Apple, We're very proud of it. We provide modems to sellular modems to iPhones, but we don't have.
A relationship with Apple on the processor. They have their own processors.
We really support the Android systems if you look at all they enjoy devices in America at the premier tier support by WelCom Snapdragon, and we have been working with Google and all of our partners and many many other companies like Meta and Microsoft.
With the Copilot and others. They're providing some of those capabilities.
I think this is transforming the industry and we want everybody to join.
I think more companies to join. I think more that we're going to see this transition to an.
AI phone and it's really going to change how we think about utilizing our smartphones.
Christ you know, there's a question about the barrier to entry, especially with Nvidia, and how long they can continue to have these profit margins. Understanding that this is a different type of AI technology, how high is the bar for sort of a barrier to entry to really be competitive in the space and dominate.
Look, a lot of respects for what Vida is doing. If I look at NVIDA evaluation. I think it just provide an inspiration and tell other semiconductor.
Companies, like Welcome, what's possible. The exciting thing is what in the VIDA is doing in the data center. When you started to run inference.
At the edge, for example, into your phone, into your computer, into your car, you need a different type of platform.
That's the platform that is in the data center.
You need a platform that they can do this all the time in a very efficient way. And that's that's the Welcome expertise all of the battery power devices. That is the area that we always had the best computing platform. So it creates an opportunity for us to replicate that model of AI growth in the edge. And I think the AI hub that you saw with all of the models on the quoker platform and a lot of developers
gravitating to it, it's a great starting point. So we're excited about that, and it's an opportunity for all the semiconductor companies or advanced processor to grow with AI.
Well, how much is your new AI hub just a replication though of the video's Kuda?
It was interesting, it's different, But I think some of the press articles actually said they quotom ai hub.
They even refer to that's the Kuda for the edge.
So I hope they're right that's going that That would be great to be in that position.
And this is a conversation about the future. Let's have a bit of a conversation about where we are right now. Can you talk to us about how healthy smartphone demand is at the moment and whether the developments that we've just discussed can influence influence upgrade cycles as soon as this year.
Look that is that's a very important question, and I can tell how we're thinking about it. We're working very hard on technology to create that where smartphone this right now, it's table I think smartphones head suffware. I think in twenty twenty three due to the macro economics, I think you know, people postpone by a new device, get a
mature market. However, we have seen in the beginning of this year that the market has stabilized and while we cannot predict when is the next cycle, what I can tell you right now with precision is AI is changing.
How we interact in how we use.
Our phones, and if eventually, if consumers field that they need to have an aiphone, that will create this new growth momentum for the industry.
We just can really precise the timing. But we're busy making sure.
Developers can access the platform and develop on those incredible new use cases.
I'm sure delicate questions, sir. Just to wrap up, it wasn't just macro, as you know, it was also geo politics for the like of Apple clearly struggling with a return of a little bit of nationalism in China and some competition as well there too. Do you think you have to pick a country to be in right now, China or the United States? Or do you think it's sustainable to say we can be in both markets.
Look, we'll get this question all the time, I think because of the geopolitics.
Here's here's the simple answer.
If you are a semi conductor company and you have a leadership position, if you have a leadership position, your product is highly differentiated. You're not in the commodity business. Uh.
Not only you're going to have a big business in the United States. You're gonna have a big business in Europe. You're going to have a big business in China. It's just a function of GDP.
So as as the company has diversified and went into phones, into PCs, into automotive. We also saw that expanding our China business as well. We have now a strong position with the China EV market. So in one way, I think that that has we have seen our business grow in China regardless of geopolitics and have everything to do about having a leadership position.
Let's pick up this conversation closer to November if we can. Christiana appreciate it. I've got to go to the commercial pray. Thanks for being with us, Christiana, my mom, dad, the Quoll com CEO from New York City this morning. Good morning, this is Bloomberg