Qualcomm is one of the largest semiconductor companies manufacturing chipsets.
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Qualcomm Shares rose in premarket trading on Monday after reports of a partnership with OpenAI to make smartphone processing chips to further the AI firm’s hardware ambitions.
US smartphone chip maker ready to work with Taiwanese semiconductor firm mediatek Developing chip for OpenAI together with Chinese manufacturer luxshare The device was co-designed and built by Ming-Chi Kuo, an analyst at TF International Securities. said on monday x. According to Kuo, mass production of the device is expected in 2028.
Qualcomm was up 12% in premarket trading. The stock is down 13% so far this year.
Qualcomm’s Stock Year to Date.
Qualcomm, OpenAI and MediaTek did not immediately respond to CNBC’s request for comment confirming the partnership.
“Only by fully controlling both the operating system and the hardware can OpenAI provide a comprehensive AI agent service,” Kuo said in the post. “Smartphones are the only device that captures the user’s full real-time state, which is the most important input for real-time AI agent inference.”
He explained that smartphones will remain the “most massive device category” in the immediate future, and it makes sense for OpenAI to develop a device that is run entirely by AI because the firm has accumulated user data over the years.
“Smartphone hardware is already highly mature, so OpenAI can work with the supply chain to develop devices,” Kuo said. “In terms of the business model, OpenAI could bundle subscriptions with hardware and create a new AI agent ecosystem with developers.”
OpenAI smartphone ambitions
Qualcomm designs chips and wireless technology for smartphones and other devices, and is best known for its Snapdragon processors, which power many Android phones, and its modem technology that enables mobile connectivity such as 4G and 5G.
It’s no surprise that OpenAI will partner with the firm to help realize its smartphone plans post-acquisition AppleDesign chief Jony Ive’s startup IO, which raised $6.4 billion in equity last year to design new AI devices, is expected to break ground in two years.
Altman said last year that the devices OpenAI is designing with io will be different from smartphones. He compared it to walking around Times Square, saying, “It would be like being able to know everything you’ve ever thought, read, said.”
“Then you can go look for an environment that’s not like walking through Times Square and getting bumped and competing for your attention with all these things,” Altman said. “But, like, sitting in the most beautiful cabin by the lake and in the mountains and enjoying the peace and quiet.”
Additionally, in September it was reported that Luxshare signed a deal with OpenAI to produce consumer devices.
