The new chip from Qualcomm (QCOM) may increase competition between Apple’s (AAPL) iOS and Android.
During its Snapdragon Summit on Monday, the firm unveiled the Snapdragon 8 Elite Mobile Platform, which includes a new, second-generation Oryon CPU that it claims is the “fastest mobile CPU in the world.” According to Qualcomm, multimodal generative artificial intelligence characteristics can be supported by the upcoming Snapdragon platform.
Qualcomm, which primarily creates chips for mobile devices running Android, claims that the new Oryon CPU is 44% more power efficient and 45% faster. As the iPhone manufacturer releases its Apple Intelligence capabilities, the new Snapdragon 8 platform may allow smartphone firms compete with Apple on the AI frontier. Additionally, Apple has an agreement with OpenAI, the company that makes ChatGPT, to incorporate ChatGPT-4o into the upcoming iOS 18, iPadOS 18, and macOS Sequoia.
According to a September Wall Street Journal (NWSA) story, Qualcomm is apparently interested in purchasing Intel (INTC) in a deal that could be valued up to $90 billion. According to Bloomberg, Apollo Global Management (APO), an alternative asset manager, had also proposed an equity-like investment in Intel with a potential value of up to $5 billion.
According to reports, which cited anonymous sources familiar with the situation, Qualcomm may postpone its decision to acquire Intel until after the U.S. presidential election next month. According to the persons who spoke with Bloomberg, Qualcomm is waiting to make a decision on the transaction because of the possible effects on antitrust laws and tensions with China after the election results.
According to a report from analysts at Bank of America Global Research (BAC), Qualcomm could expand, take the lead in the market for core processor units, or CPUs, for servers, PCs, and mobile devices, and get access to Intel’s extensive chip fabrication facilities by acquiring Intel. They went on to say that Qualcomm would become the world’s largest semiconductor company if its $33 billion in chip revenue were combined with Intel’s $52 billion.
The experts claimed that those advantages would be outweighed by the financial and regulatory obstacles posed by a possible transaction. They are dubious about a prospective takeover and think that Intel’s competitors may gain from the ambiguity surrounding the agreement.