Qualcomm (QCOM) is pushing deeper into the generative AI space with its latest smartphone chip, the Snapdragon 8s Gen 3. The processor, which will be available in Android smartphones from Chinese manufacturers including Xiaomi and Honor, is the second addition to Qualcomm's Snapdragon 8 Gen 3 family.
Like the original Snapdragon 8 Gen 3, Qualcomm is marketing the 8s Gen 3 as an on-device AI powerhouse. The company says that the processor supports a number of models, including Meta's Llama 2 and Google's Gemini Nano.
The 8s Gen 3 places just below the standard 8 Gen 3 in terms of performance and pricing, meaning you'll likely find it in smartphones that are just under flagship devices. The company says it's taken a number of the major features from the top-of-the-line 8 Gen 3 and dropped them into the 8s Gen 3, including high-powered gaming performance.
But Qualcomm is largely positioning this chip as a generative AI processor. So far, on-device generative AI features include photo editing and real-time translation. Smartphone makers are increasingly leaning into the technology as a major selling point as the first major software change for devices in some time.
The smartphone market has largely remained stagnant over the last few years, with only incremental changes to cameras and processing speeds. As a result, consumers are more apt to hold onto their devices for longer periods of time, slowing down overall sales.
Generative AI, however, could be just what the market needs: a new, flashy capability that gets consumers to update their phones as faster clips.
Android smartphone makers are taking an early lead with the technology, with both Samsung and Google (GOOG, GOOGL) touting their latest offerings as generative AI-capable devices. Apple (AAPL) is widely expected to debut some kind of generative AI software during its WWDC developer conference, which will likely take place in June.
Wall Street analysts are pointing to generative AI as a potential catalyst for a boost in Apple's next-generation iPhone sales. And while the company hasn't made any announcements regarding what it's cooking up, CEO Tim Cook has said he sees generative AI as a "huge opportunity for Apple" and that the iPhone maker will show off what it's been developing later this year.
But generative AI apps and features are still in their early stages, and there's nothing quite interesting enough on the market yet to get people to start running out their front doors and into their nearest smartphone shops.
And some of the most well-known generative AI apps like ChatGPT are cloud-based, meaning it doesn't matter what kind of chip your smartphone is running; as long as you've got a connection to the internet, you'll likely be able to use the service.
Still, as developers continue to develop the technology and roll it into more and more apps, chips capable of running them, like the 8s Gen 3, will become increasingly important for users who want to take advantage of the software.
Daniel Howley is the tech editor at Yahoo Finance. He's been covering the tech industry since 2011. You can follow him on Twitter @DanielHowley.
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