Qualcomm reveals AI smartphone chip as industry leans into AI phones

The smartphone industry is banking on AI to reaccelerate device sales after years of slowing growth. But to do that, it’ll have to give consumers a reason to pony up for new phones more often.

Qualcomm (QCOM) is aiming for its latest smartphone chips to do just that, adding a number of new on-board AI capabilities it says will allow you to do things like virtually adjust the lighting in your video calls in real-time and allow your device to recognize real-world objects without having to access the web.

The Snapdragon 8 Elite is Qualcomm’s latest top-of-the-line mobile processor and includes improved performance and power efficiency thanks to the company’s use of what it calls Prime Cores, which are designed for high-end applications, and Performance Cores, for more casual tasks.

Qualcomm says the chips will make their way into smartphones from companies including Samsung, Xiaomi, ASUS, OnePlus, Honor, Oppo, and more in the coming weeks.

The chipmaker is promising some big performance gains from the Snapdragon 8 Elite, saying its central processing unit (CPU) and graphics processing unit (GPU) should save 44% and 40% more energy than its predecessor, the Snapdragon 8 Gen. 3, which Samsung used in its Galaxy S24 line of smartphones.

But the chip’s biggest feature is its ability to power onboard AI functions. Qualcomm says the chip will allow for things like erasing unwanted objects in videos, rather than just photos, without having to upload your movie to the cloud for processing. Instead, your phone will be able to simply remove that person who walked into the background of your shot.

The company also says OEM partners can use the NPU to expand photos beyond their borders by, for instance, increasing the background of a shot, and use the camera to interact with the world around you. For instance, you’ll be able to point your phone at an object and ask the onboard voice assistant about objects in your shot without the need to connect to the web.

Qualcomm unveiled its first-generation Snapdragon X Elite in late 2023, and Microsoft (MSFT) eventually chose the processors for its Surface line of laptops and processors, debuting the new PCs in May this year.

Onboard AI is the major common denominator between the two generations of chips. Qualcomm is working to ensure that users don’t need an internet connection to use generative AI apps and services, which could prove to be a major differentiator for new smartphones and PCs versus their predecessors.

Both the PC and smartphone industries believe AI will be the next big feature to get consumers to upgrade their devices to newer systems in the coming months and years. Still, outfitting devices with the ability to run AI apps isn’t going to get the vast majority of customers interested in spending a few hundred dollars on a new laptop or smartphone. The only thing that will do that are intriguing new apps that take advantage of AI.

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Sure, more intelligent digital assistants are helpful, and improving photo and video capabilities is impressive, but there’s still no single killer app or app category that’s got people talking about wanting an AI device. My own friends and family are certainly interested in the marketing around AI products, but none of them, outside of a few early adopters and people who need the latest and greatest devices, are interested in paying up for AI just yet.

That said, it’s still early in the consumer AI lifecycle, meaning there’s plenty of time for a slick new app that takes advantage of AI to come along. And when it does, we’ll finally get a sense of the appetite for AI-powered hardware.

Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley.

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