Mobile chip design leader Qualcomm and social media titan Meta Platforms have joined forces to revolutionize the world of Artificial Intelligence (AI). Qualcomm’s breakthrough in shrinking AI algorithms for Android phones promises to revolutionize consumer and cloud computing industries. This partnership enables AI-powered services directly on mobile devices, eliminating the need for costly data centers and making AI more accessible. Users benefit from enhanced convenience and efficiency, while industries like e-commerce and healthcare witness transformative impacts.
The democratization of AI fosters innovation from startups and entrepreneurs, leveling the playing field. But, data privacy and security concerns must be addressed with robust encryption and protection measures. This advancement propels us into a new era of collaborative intelligence, shaping a connected, AI-driven future.
Meta’s open-source Llama 2 accelerates AI deployment
Early in 2023, Qualcomm’s announcement about fitting AI algorithms on Android phones went largely unnoticed as Nvidia’s AI training sales took center stage. At the same time, Qualcomm’s partnership with Meta Platforms signals a significant shift in the AI landscape. By shrinking massive AI algorithms to operate on smartphones, Qualcomm aims to streamline generative AI services and enable them to run directly on mobile devices. This breakthrough is set to revolutionize AI inference, reducing the reliance on data centers and enabling AI to operate efficiently on smartphones and other devices.
Meta’s decision to make its large language model, Llama 2, open-source further propels AI deployment on mobile devices. With Qualcomm’s support, Meta aims to drive innovation and reduce barriers for developers by making generative AI accessible on both the cloud and edge devices, including smartphones, laptops, vehicles, and IoT devices. By bringing AI on-device, Meta seeks to tap into new markets and enhance user experiences with its Quest headsets, countering Apple’s moves in the augmented and virtual reality space.
Qualcomm’s potential as an AI sleeper stock
While Meta has its sights set on augmented and virtual reality markets, Qualcomm emerges as the real AI sleeper stock. Renowned for Android phone components, the company has been diversifying its business into PCs and laptops, and in 2024, Qualcomm’s Snapdragon mobile processor technology will power new laptop models running Microsoft Windows. This move is reminiscent of Apple’s success with M-series chips in its MacBooks. Also, Qualcomm’s support for deploying Meta’s Llama 2 on flagship Android phones and PCs further solidifies its position in the AI space.
The Road Ahead
As 2023 marks the rising awareness of AI software’s proliferation, Qualcomm’s stock has faced challenges due to the pandemic-induced downturn in smartphone sales. The company’s potential for capturing new markets in on-device AI deployment positions it for a new growth cycle. With Qualcomm’s stock valued at just 13 times the expected fiscal year 2024 earnings per share, the road ahead may be bumpy, but the prospects for Qualcomm’s AI initiatives are promising.
To say the least, the collaboration between Qualcomm and Meta opens up exciting possibilities for the future of AI-powered services on mobile devices. With Qualcomm’s breakthroughs in shrinking AI algorithms and Meta’s commitment to open-source AI models, the partnership promises to accelerate the integration of AI into our daily lives. As AI continues its expansion into new territories, Qualcomm’s potential as an AI sleeper stock emerges, and investors keep a keen eye on the company’s growth trajectory in the dynamic world of on-device AI deployment.
