Speaker 1: Here's the latest and videos record search, driving others to
Speaker 1: chase this rally, among them quoll Com, the company announcing
Speaker 1: a series of advancements as it works to integrate AI
Speaker 1: into computers and smartphones through its processors. Christiana AmAm, CEO
Speaker 1: of Qualcom, joined us now from the Mobile World Congress
Speaker 1: in Barcelona. Christiana wanted for to catch up to you
Speaker 1: once again, sir, for the second time in twenty twenty four.
Speaker 1: We appreciate your time, sir. I just want to talk
Speaker 1: about where we are now and where you think this
Speaker 1: is going. Where we are now, the focus seems to
Speaker 1: be on large language models, big data centers and n video.
Speaker 1: Talk to me about the next phase of this and
Speaker 1: ultimately where you and the team fits in.
Speaker 2: Very good. Look, we're talking to all of you.
Speaker 3: Yes, a lot of excitement here in Mobile Congress, a
Speaker 3: lot of new phones being launched with jen Ai. And
Speaker 3: I think the answer to your question is we're in
Speaker 3: the very beginning of the cycle. But like everything in computing,
Speaker 3: you saw a lot of things starts in the data center,
Speaker 3: starts into the cloud and then go to the distributed devices.
Speaker 3: And I think what we have seen how happening in
Speaker 3: the cloud for the past couple of years and accelerating
Speaker 3: right now, we're just starting to see the beginning of
Speaker 3: that happening.
Speaker 2: The devices a lot of new use cases.
Speaker 3: The JENNYI is developing on phones, on PCs, on cars,
Speaker 3: on industrial devices, and alongside the cloud. The use cases
Speaker 3: are a little bit different, and it could create hopefully
Speaker 3: a new cycle that people want to buy an AIPC
Speaker 3: an AI smartphone, and I think that's going to be
Speaker 3: good for the industry.
Speaker 1: Christiana, can you describe what the use case might be.
Speaker 1: Are we still in the process of discovery. Are we
Speaker 1: in a position where we're sitting here thinking we know
Speaker 1: this can be big, we just don't know what it is.
Speaker 2: Yes, No, this is good.
Speaker 3: You know what is interesting is you're starting to see
Speaker 3: some use cases now being available commercially. Some of the
Speaker 3: devices they get launch. You see things like, for example,
Speaker 3: live translation. You can call somebody and you speak in English,
Speaker 3: they hear in a different language, they speak a different languag,
Speaker 3: you hear back in English, and you see those Sours
Speaker 3: and Eguage models doing translation in real time. Some interesting
Speaker 3: thing happening on Android with Circle to Search. I was
Speaker 3: changing photography and those some of the consumer applications. There's
Speaker 3: a lot of other implications for productivity as well.
Speaker 2: One of the most interesting thing and it shows the
Speaker 2: transformation of our company.
Speaker 3: Every year we'll come to Mobile Congress and we talk
Speaker 3: about a new cellular modem, and yes we did that.
Speaker 2: I think we announced the most advanced five G modem.
Speaker 2: But the biggest announcement from welcome.
Speaker 3: As the show was a AI hub, and that give
Speaker 3: an idea of how fast this is evolving. We get
Speaker 3: seventy five seventy five models. We have models from open Ai,
Speaker 3: we have models from Metal, we have models and open
Speaker 3: Stars where.
Speaker 2: There's an audio video image. Those are available for developers.
Speaker 2: They can start writing an application.
Speaker 3: Integrate the model to the app and push to the
Speaker 3: app store of Android and starting commercializing those things with
Speaker 3: all of this snaptare and devices. And that's showed that
Speaker 3: we're the beginning of something very interesting here.
Speaker 4: You mentioned Android, you didn't mention Apple, and I'm curious
Speaker 4: to just announce that they're getting out of electric vehicles
Speaker 4: and they're going to invest more in artificial intelligence. Well,
Speaker 4: app will be a competitor or a client in your
Speaker 4: pathway to really adopt a greater AI focus. In your chips.
Speaker 3: Look, we have a relationship of Apple, We're very proud
Speaker 3: of it. We provide modems to sellular modems to iPhones,
Speaker 3: but we don't have.
Speaker 2: A relationship with Apple on the processor. They have their
Speaker 2: own processors.
Speaker 3: We really support the Android systems if you look at
Speaker 3: all they enjoy devices in America at the premier tier
Speaker 3: support by WelCom Snapdragon, and we have been working with
Speaker 3: Google and all of our partners and many many other
Speaker 3: companies like Meta and Microsoft.
Speaker 2: With the Copilot and others. They're providing some of those capabilities.
Speaker 3: I think this is transforming the industry and we want
Speaker 3: everybody to join.
Speaker 2: I think more companies to join. I think more that
Speaker 2: we're going to see this transition to an.
Speaker 3: AI phone and it's really going to change how we
Speaker 3: think about utilizing our smartphones.
Speaker 4: Christ you know, there's a question about the barrier to entry,
Speaker 4: especially with Nvidia, and how long they can continue to
Speaker 4: have these profit margins. Understanding that this is a different
Speaker 4: type of AI technology, how high is the bar for
Speaker 4: sort of a barrier to entry to really be competitive
Speaker 4: in the space and dominate.
Speaker 3: Look, a lot of respects for what Vida is doing.
Speaker 3: If I look at NVIDA evaluation. I think it just
Speaker 3: provide an inspiration and tell other semiconductor.
Speaker 2: Companies, like Welcome, what's possible. The exciting thing is what
Speaker 2: in the VIDA is doing in the data center. When
Speaker 2: you started to run inference.
Speaker 3: At the edge, for example, into your phone, into your computer,
Speaker 3: into your car, you need a different type of platform.
Speaker 2: That's the platform that is in the data center.
Speaker 3: You need a platform that they can do this all
Speaker 3: the time in a very efficient way. And that's that's
Speaker 3: the Welcome expertise all of the battery power devices. That
Speaker 3: is the area that we always had the best computing platform.
Speaker 3: So it creates an opportunity for us to replicate that
Speaker 3: model of AI growth in the edge. And I think
Speaker 3: the AI hub that you saw with all of the
Speaker 3: models on the quoker platform and a lot of developers
Speaker 3: gravitating to it, it's a great starting point. So we're
Speaker 3: excited about that, and it's an opportunity for all the
Speaker 3: semiconductor companies or advanced processor to grow with AI.
Speaker 4: Well, how much is your new AI hub just a
Speaker 4: replication though of the video's Kuda?
Speaker 3: It was interesting, it's different, But I think some of
Speaker 3: the press articles actually said they quotom ai hub.
Speaker 2: They even refer to that's the Kuda for the edge.
Speaker 3: So I hope they're right that's going that That would
Speaker 3: be great to be in that position.
Speaker 1: And this is a conversation about the future. Let's have
Speaker 1: a bit of a conversation about where we are right now.
Speaker 1: Can you talk to us about how healthy smartphone demand
Speaker 1: is at the moment and whether the developments that we've
Speaker 1: just discussed can influence influence upgrade cycles as soon as
Speaker 1: this year.
Speaker 3: Look that is that's a very important question, and I
Speaker 3: can tell how we're thinking about it. We're working very
Speaker 3: hard on technology to create that where smartphone this right now,
Speaker 3: it's table I think smartphones head suffware. I think in
Speaker 3: twenty twenty three due to the macro economics, I think
Speaker 3: you know, people postpone by a new device, get a
Speaker 3: mature market. However, we have seen in the beginning of
Speaker 3: this year that the market has stabilized and while we
Speaker 3: cannot predict when is the next cycle, what I can
Speaker 3: tell you right now with precision is AI is changing.
Speaker 2: How we interact in how we use.
Speaker 3: Our phones, and if eventually, if consumers field that they
Speaker 3: need to have an aiphone, that will create this new
Speaker 3: growth momentum for the industry.
Speaker 2: We just can really precise the timing. But we're busy
Speaker 2: making sure.
Speaker 3: Developers can access the platform and develop on those incredible
Speaker 3: new use cases.
Speaker 1: I'm sure delicate questions, sir. Just to wrap up, it
Speaker 1: wasn't just macro, as you know, it was also geo
Speaker 1: politics for the like of Apple clearly struggling with a
Speaker 1: return of a little bit of nationalism in China and
Speaker 1: some competition as well there too. Do you think you
Speaker 1: have to pick a country to be in right now,
Speaker 1: China or the United States? Or do you think it's
Speaker 1: sustainable to say we can be in both markets.
Speaker 3: Look, we'll get this question all the time, I think
Speaker 3: because of the geopolitics.
Speaker 2: Here's here's the simple answer.
Speaker 3: If you are a semi conductor company and you have
Speaker 3: a leadership position, if you have a leadership position, your
Speaker 3: product is highly differentiated. You're not in the commodity business. Uh.
Speaker 2: Not only you're going to have a big business in
Speaker 2: the United States. You're gonna have a big business in Europe.
Speaker 2: You're going to have a big business in China. It's
Speaker 2: just a function of GDP.
Speaker 3: So as as the company has diversified and went into phones,
Speaker 3: into PCs, into automotive. We also saw that expanding our
Speaker 3: China business as well. We have now a strong position
Speaker 3: with the China EV market. So in one way, I
Speaker 3: think that that has we have seen our business grow
Speaker 3: in China regardless of geopolitics and have everything to do
Speaker 3: about having a leadership position.
Speaker 1: Let's pick up this conversation closer to November if we can.
Speaker 1: Christiana appreciate it. I've got to go to the commercial pray.
Speaker 1: Thanks for being with us, Christiana, my mom, dad, the
Speaker 1: Quoll com CEO from New York City this morning. Good morning,
Speaker 1: this is Bloomberg