The Exchanges

Q their heads a long time ago. Um, Now it seems like the technology is actually getting there to the point where Maybe it will be useful. Maybe it can make sense of our context. So Cristiano, when you think about, all right, I'm going to put chips in glasses and maybe some other different formats, uh, and people will use them and have X experience. What is that experience? Yes.

A Let's talk about the experience and I'm going to, uh, break this conversation. I'll talk about the experience and I'm going to talk about the technology that goes, uh, uh, you know, behind it. So think about how glasses are performing today. You know, you have, for example, the Meta Ray-Ban glasses. I think there's going to be other glasses coming within the Google ecosystem this year. And what are the glasses doing today? Like you have cameras, so you see what you see, you can understand the image, it can annotate the image, and you have a microphone, it has a speaker, may or may not have a display. You know, you have use cases even without the display, like you have the Meta Ray-Ban glasses. What'd the experience look like? You're going to be First of all, for those things to, to be, uh, to get scale, they have to have very low friction, and the experience has to be useful, otherwise it's like a gimmick, you're not gonna use it. So, the experience can be like this. Uh, I am, I'm talking to you, and then, uh, let's say I, I see somebody, uh, in the audience, and I, and I just said, uh, who is this person? And the glass will tell me. Uh, I don't know. Let me check. Uh, I, I check on the web. It's this person, uh, here is, this is this person's name. I said, oh, ok. Yeah, you know, you met her before. There was an email that was sent to you, uh, from the, from this person. It ha…

AI assessment note: “It has to be something like you have, like you have your friend with you”

Q of product at Dell speaking to the verge. He says, uh, what we've learned over the course of the year, especially from a consumer's perspective is they're not buying based on AI. And in fact, I think AI probably confuses them more than it helps them understand a specific outcome. Obviously, Qualcomm has a stake in the success of AI PCs. What is happening today, and where is it going?

A It's a, it's a great topic of conversation. Look, first of all, as, as we entered the PC space, I would argue that in, that a lot of what's driving the sale of Snapdragon PowerPC is the fact that we deliver multi-day battery life, a lot of performance, In a very exciting thin and light form factor, right? So we just build a better PC. Uh, on the consumer side, I would agree with that, that you don't see yet a lot of agents and, and you know, I, I know people want to see this right away. I wish it was seen right away. I don't necessarily disagree with that on the consumer front because, uh, Microsoft just launched it Agents for Windows. It just launched. So I think, I think it's going to, people are going to use it more and more as you're starting to rely on agents, and I think you're going to see things that are going to be, um, uh, running on your device. But I think that's not the story for AIPC. The story is a little bit different. What we see happening with AIPC and, and the fact that we actually have the ability to run Uh, significant high performance inference on, on a laptop. We're seeing is something else. What we're seeing is right now you have, um, many, many, many, uh, applications and services on your PC that are doing a lot of cloud computation. And if you could rely on the computing that is available on the PC, uh, not only is going to be faster, but it has a comp…

AI assessment note: “on the consumer side, I would agree with that, that you don't see yet”

Q AI, the compute underneath is really important and you're in position to do it. And recently you've talked about how your belief is that the market opportunity for an AI device, and we're going to get into what the form factor is going to look like, but the market opportunity is ten billion devices, which would make it bigger Than the smartphone market. How do you get to that number?

A So it's, it's, uh, it's interesting, and I think for you to, for you to get at that number, it's actually important to see, uh, how the smartphone had, you know, evolved over different generations, and, and I think you have a couple things, uh, you have the evolution of phones, you have the evolution of compute, and, and then how AI changes that going forward, and maybe I will, I'll, I'll take us a little bit into that journey, just to, To, to talk about it. One of the biggest change. I won't go all the way back to two G, but one of the biggest change that happened in the phone industry when, when we develop broadband, um, into cellular and we said we can have a broadband speeds. We realized that on the other side of the broadband, you need a computer. So your phone need to become a computer and you need to develop a computer that will fit in the palm of your hand. And that's, that's the smartphone. That's the smartphone that changes Computer forever. Like, this is our inseparable device. Um, we carry with us all the time, and it is doing, uh, it's been at the center of our digital life. Now, uh, as, as you keep advancing, I think, in, you know, in smartphones right now, we are in the billion. Every single year is 1.2 billion phones are purchased. Uh, it's the number one consumer electronics, and, uh, And everybody has one. But when you start thinking about what's happening wit…

AI assessment note: “not only the computer that you carry, but also the computer that you wear”

Q at their recent, uh, thinking game documentary, they're just like pointing their phone at, uh, at things and saying, what is this? It's like, you need glasses. Um, you have open AI you're, you're working with open AI on this project, family of devices that are going to be in a bunch of different places. And Apple, obviously, has to be considered a power player here as well. Who wins?

A Look, um, I, I'll, I'll answer this question by going into the beginning of the internet, right? So, uh, uh, Orkut wasn't the social media that won, ended up being Facebook, and then, and then later Instagram. I think, uh, MapQuest wasn't the main map, you know, eventually it was Google Maps. So, uh, It's early to call. I think you see all those companies. I think, uh, they have big ecosystem. They're investing on their ecosystem. We'll see what happens. However, I'm going to try to give you a little bit of an answer. I, I think the, the, I have this view and this is, uh, maybe a longer conversation that we're going to have time for, but I think at the end of the day, the winner of the edge Is going to be the winner of the AI race. And the reason I say that is because, ah, the, especially for, for everything that is personal, the edge has real contacts. Um, you know, you can all go. Where the humans are.

AI assessment note: “the winner of the edge Is going to be the winner of the AI race”

Q closer to AI, there's gonna be people that are gonna wanna say, let's just bring us together. Elon Musk has talked about how the reason for building Neuralink is brain computer interface company is He said eventually AI is going to get more powerful than humans and we better merge with them or they're going to destroy us. So I want to just ask you, would you merge with AI?

A No, but look, in the, in the conversation that we just had, we're, we're talking very consumer centric when you said about, you know, too much technology, but it's easier to also understand, uh, when you move from the consumer to the enterprise, If you actually think about the fact that if you have, uh, the ability to learn everything in real time, like we're actually seeing some use cases right now, especially for industrial, when, when you have somebody that is, as an operator of, of an equipment or of a refiner or everything, and then all of a sudden you have this agent with you that you get to a particular, Equipment. And you say, how do I operate this? And they'll say, here's how you're going to operate it. You do this, you do that. So the ability for you to have access to knowledge in real time, I think there's incredibly, um, uh, incredible opportunity to actually democratize knowledge and learning. I think, so that's, that's another thing about the connection between, um, you know, uh, AI in, uh, in, in, In terms of augmenting human capabilities, we, we can say that because we saw that with phones. With phones is how many nations got access to the internet and became, ah, you know, access to digital through the phone, you know, they wasn't through a computer. And I think it was, it's incredibly empowering to have people to be connected and ability to internet. I think m…

AI assessment note: “No, but look, in the, in the conversation that we just had”

Q a pretty good understanding of the demand that they're anticipating because they need your chips to be able to build things out. Thinking about the AI build out and maybe also the AI device build out. Uh, and looking into the crystal ball that you have of what the future looks like. Are things going to continue a pace? Can they possibly keep moving as fast as they have been?

A Look, ah, I feel that the, and I think that question is really directed, I think, what's probably happening on the data center, because on the personal, on the device side, which is at the beginning, ah, I think we're seeing, ah, a big trajectory, like for example, glasses continue to increase quarter over quarter, ah, but I think the, the broader question is to the speed on the data center, and here's my answer. If we, if we go back to the year 2000, when the dot-com crash, right? I have that correction on, on the dot-com. Go back to year 2000, and you think about what we thought back then, what the internet would be. I will tell you that today, 25 years later, 26 years now, um, is exactly way bigger than people thought it would be. So whatever they thought is in 2000, the internet will be exactly way bigger right now.

AI assessment note: “on the device side... we're seeing, ah, a big trajectory”